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Key Points

India's office market is experiencing unprecedented growth with net absorption reaching 16.3 million square feet in just the third quarter. Delhi NCR and Bengaluru emerged as the top performers, together accounting for nearly half of the total absorption. The surge is primarily driven by Global Capability Centres and the IT-BPM sector, indicating strong expansion across corporate portfolios. With 80% of new completions being premium Grade-A+ assets, the market is clearly shifting toward future-ready workspace solutions.

Key Points: India Office Market Hits Record 16.3 Million Sq Ft Absorption

  • Delhi NCR and Bengaluru lead with 3.8 million and 3.5 million sq ft absorption respectively
  • Global Capability Centres account for 32% of quarterly leasing activity
  • IT-BPM sector remains largest occupier group with 31% market share
  • Premium Grade-A+ assets dominate 80% of new completions driving premiumization trend
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Net absorption of India's office market set to hit record high, surges 35 pc in Q3 CY25: Report

India's office real estate surges 35% with 16.3 million sq ft net absorption in Q3 2025, driven by GCCs and premium workspace demand across top cities.

"The market is now firmly in an expansionary cycle, with over 80% of Q3 leasing driven by fresh take-up - Anshul Jain, Cushman & Wakefield"

New Delhi, Sep 30

India’s office real estate market saw its net absorption touching 16.3 million square feet across the top eight cities in Q3 CY 2025, a 35 per cent year-on-year (YoY) increase, a report said on Tuesday.

In the first nine months of the year, the market recorded 44.3 million square feet of net absorption, reaching 87 per cent of the total for 2024, a report from real estate services firm Cushman & Wakefield said.

Analysts said the sector is on course to exceed last year's record of 50.7 million square feet, potentially establishing a new annual absorption high.

Net absorption represents the net change in occupied office space and the huge growth of this measure underscored the depth of occupier activity and the sustained expansion of office footprints across sectors, the report said.

Delhi NCR and Bengaluru topped the quarter with 3.8 million and 3.5 million square feet, respectively, together representing nearly half of total net absorption.

Global Capability Centres accounted for 32 per cent of leasing in the quarter. IT-BPM was the largest sector at 31 per cent, followed by engineering and manufacturing at 18 per cent, and BFSI at 14 per cent. Flexible workspace operators represented 11 per cent.

Mumbai, Chennai, and Pune surpassed their year-to-date (YTD) net absorption levels from the same period last year, and the latter two cities recorded their highest-ever YTD net absorption.

Gross Leasing Volume (GLV) in Q3, which is the total amount of office space leased during this quarter, including renewals and new leases, reached 22.6 million square feet, a decline of 2.6 per cent year-on-year.

Year-to-date leasing totals 64.2 million square feet, positioning 2025 to potentially match or exceed last year's record of 88 million square feet.

“The market is now firmly in an expansionary cycle, with over 80 per cent of Q3 leasing driven by fresh take-up. Nearly 80 per cent of Q3 completions were Grade-A+ assets, underscoring the decisive shift toward premium, future-ready workspaces," said Anshul Jain, Chief Executive – India, SEA & APAC Office and Retail, Cushman & Wakefield.

Fresh leasing marked a 21 per cent quarter-on-quarter increase and a slight YoY uptick, the real estate services firm noted.

- IANS

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Reader Comments

R
Rohit P
Great numbers but I hope this growth is sustainable. The focus on Grade-A+ assets is good, but what about smaller businesses who can't afford premium spaces? The market needs to be inclusive for all types of companies.
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Sarah B
Working in a GCC in Bengaluru, I can confirm the expansion is real! Our company just took up two more floors in our building. The quality of office spaces here is now world-class. 🏢✨
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Arjun K
The 32% share of Global Capability Centres shows how India is becoming the back office of the world. This creates so many jobs for our youth. Hope this trend continues and benefits tier-2 cities as well.
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Michael C
Interesting to see flexible workspace operators at 11%. With hybrid work becoming permanent, companies are clearly adopting more flexible office strategies. Smart move by Indian businesses.
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Kavya N
While the numbers look impressive, I'm concerned about the traffic and infrastructure pressure in cities like Bengaluru and Delhi. Hope the government is planning better public transport and roads to handle this growth.

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