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India's top metropolitan cities saw a 26% year-on-year increase in new office space supply during the July-September 2025 quarter, totalling 16.1 million sq. ft., according to Vestian. Pune led with 3.7 million sq. ft. of new space-a 164% surge-followed by Delhi-NCR (3.1 million sq. ft., up 35%) and Chennai (2.1 million sq. ft., up 320%). Mumbai's supply doubled, while Bengaluru and Hyderabad saw declines. Vestian CEO Shrinivas Rao said strong occupier demand, led by Global Capability Centres, drove record absorption levels. Major developers and REITs, including DLF, Embassy, and Mindspace, remain active, signalling sustained growth in India's resilient office market.
India's leading metropolitan cities witnessed a notable increase in new office space supply during the September quarter, reflecting strong occupier demand from both global and domestic firms. Data from US-based real estate consultancy Vestian showed that new office space supply across the top six cities rose by 26% year-on-year to 16.1 million sq ft. Developers continued to add premium office inventory, encouraged by steady leasing momentum and growing interest from multinational corporations. Advertisement
Among the top-performing cities, Pune recorded the highest new supply at 3.7 million sq ft during the July-September period marking a sharp rise of 164% from the same period a year earlier. The Delhi-NCR region followed with 3.1 million sq ft of fresh supply, representing an annual growth of 35%.
Chennai witnessed one of the most significant jumps, with new office completions surging 320% to 2.1 million sq ft, while Mumbai's supply doubled to 1.8 million sq ft. In contrast, Bengaluru the country's largest office market saw a 6% decline, with new additions falling to 3.4 million sq ft. Hyderabad also recorded a drop of 51%, with only 2 million sq ft of new supply added during the quarter. Kolkata, another major city tracked by Vestian, reported no new office supply during the same period.
Vestian's CEO, Shrinivas Rao, stated that the third quarter of 2025 saw the highest absorption levels so far this year, primarily driven by the expansion of Global Capability Centres (GCCs). He added that strong demand helped keep India's office market resilient despite ongoing global trade and geopolitical challenges. Rao further mentioned that construction activity has picked up pace, leading to significant new supply across key markets.
He also expressed that the combination of healthy absorption, steady supply growth, and a broad occupier mix is expected to sustain market momentum in the coming quarters. He noted that restrictions on H-1B visas could further increase the demand for office space in India, as more multinational firms expand their back-end operations within the country.
According to Vestian, total office leasing across the seven major Indian cities rose 6% during the July-September period, reaching 19.69 million sq ft. Some of the country's major developers including DLF Ltd, Tata Realty & Infrastructure, Hiranandani Group, Embassy Group, Prestige Estates, Sattva Group, and RMZ Group remain active in delivering new projects to meet rising demand.
India's listed Real Estate Investment Trusts (REITs) have also played a key role in expanding the country's commercial property landscape. The four REITs Sattva-Blackstone-backed Knowledge Realty Trust, Embassy Office Parks REIT, K Raheja-backed Mindspace Business Parks REIT, and Brookfield India Real Estate Trust continue to grow their portfolios through both greenfield and brownfield expansions.
Source PTI
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