Even as the residential market stabilizes, India’s office real estate sector is showing fresh momentum. According to the latest ANAROCK Research data, average office rentals in the top 7 cities jumped 6% year-on-year — from ₹85 per sq. ft. in 9M 2024 to ₹90 per sq. ft. in 9M 2025.
Vacancy levels have fallen to their lowest in three years — down from 16.7% to 16.2%, despite a steady stream of new office completions.
Rents Rise, Vacancies Fall
- Average office rent: ₹90 per sq. ft. (up from ₹85 last year)
- Vacancy levels: 16.2% in 9M 2025 (down from 16.7%)
- City with least vacancy: Chennai (8.9%)
- Highest rent growth: Bengaluru (9% year-on-year increase)
The data signals that India’s post-pandemic office recovery is firmly underway, powered by expanding global capability centers (GCCs), coworking spaces, and BFSI demand.
Pune and Bengaluru Dominate Absorption
Net office space absorption across the top 7 cities reached a record 42 million sq. ft. — up 34% from 31 million sq. ft. in the same period last year.
- Pune led the charge with a massive 97% rise in absorption, growing from 3.1 to 6.2 million sq. ft.
- Bengaluru topped in total leasing with 9.95 million sq. ft., followed by Delhi-NCR (8.2 million sq. ft.) and Mumbai Metropolitan Region (6.6 million sq. ft.)
- Kolkata was the only city to see a dip of 19% in leasing activity.
“GCCs alone accounted for 40% of total office leasing in India,” said Anuj Puri, Chairman of ANAROCK Group. “Bengaluru, Pune, and Chennai remain the preferred destinations for such occupiers.”
New Supply Surges — Led by Pune and NCR
Developers responded to the demand with a 15% jump in new office completions — from 34 million sq. ft. in 9M 2024 to 39.2 million sq. ft. this year.
- Pune again topped with a 168% rise in new office completions.
- Delhi-NCR saw 80% growth, followed by Chennai (28%) and Bengaluru (20%).
- In contrast, Hyderabad (-39%) and Mumbai (-41%) saw a slowdown in new completions, as developers focused on leasing existing inventory.
Who’s Leasing All This Space?
The sector-wise split reveals that the office market’s backbone remains strong:
- IT/ITeS sector: 27% of total leasing (slightly lower than last year)
- Coworking spaces: 23% (up from 21%)
- BFSI: 18%
Coworking and hybrid work models have continued to shape demand. Many companies are opting for flexible, green-certified, amenity-rich spaces, which are now a major focus for developers.
What This Means for Businesses
For occupiers, the data indicates rising rents but improving availability of premium Grade A offices with modern infrastructure.
For developers, it’s a sign that the commercial segment is rebounding faster than expected.
For employees and cities, it means more job hubs, revived CBDs, and higher business confidence.
Even with global headwinds, India’s office market is back in growth mode — signaling strong investor faith in the country’s long-term corporate fundamentals.
Also Read: Occupiers across major markets in India willing to pay higher rentals for quality office supply
