365telugu.com online news,National,October 17th, 2025: India’s office market sustained strong momentum in 2025, with 56.8 mn sq. ft. of gross absorption across the top six cities. Global Capability Centres (GCCs) remained key demand drivers, contributing over 30% (5.9 mn sq. ft.) of total leasing, led by Bengaluru, Pune, and Hyderabad. New supply rose 9.6% YoY to 35.4 mn sq. ft., while the vacancy rate eased to 14%.
Driven by demand from IT-BPM, Global Capability Centres (GCCs), BFSI, and flexible workspace operators, the market remains well-positioned to cross the 75 mn sq. ft. mark by the end of 2025, surpassing the previous annual peak.
| Q3 2025 | 2025F | |
| Demand | 17.9 mn sq. ft. | 75.0 mn sq. ft. |
| Supply | 10.3 mn sq. ft. | 70.2 mn sq. ft. |
| Overall Grade A Stock | 831.7 mn sq. ft. | 866.3 mn sq. ft. |
Source: Savills India Research
“India’s office real estate sector has shown strong resilience, achieving 56.8 million sq. ft. of gross absorption year-to-date, despite global economic challenges and trade disruptions. The market is experiencing a phase of structural growth, fueled by consistent demand from sectors such as IT-BPM, Global Capability Centres (GCCs), BFSI, and flexible workspace providers. Although occupiers are navigating cautiously through changing market dynamics, we anticipate continued robust interest from international firms in Grade A office spaces, with total absorption expected to approach 75 million sq. ft. by the end of the year,” said Naveen Nandwani, Managing Director, Commercial Advisory and Transactions, Savills India.
Key Highlights of Q3 2025 for India office market
· India recorded 17.9 mn sq. ft. of office absorption in Q3 2025, reflecting a 24% YoY dip Delhi-NCR led leasing with 5 mn sq. ft., followed by Bengaluru (3.9 mn sq. ft.) and Pune (2.8 mn sq. ft.)
· Tech (33%), flexible workspaces (15%), and BFSI (13%) drove overall demand
· Large deals (≥100,000 sq. ft.) comprised 42% of total transactionsDelhi-NCR and Bengaluru contributed 59% of India’s total new completions (6.0 mn sq. ft.)
· GCCs remained key occupiers, driving 30%+ of total leasing (5.9 mn sq. ft.) led by Bengaluru, Pune, and Hyderabad (4.8 mn sq. ft.).
| City | Gross AbsorptionYTD 2025 (mn sq. ft.) | SupplyYTD 2025 (mn sq. ft.) | Grade A StockYTD 2025 (mn sq. ft.) |
| Bengaluru | 14.6 | 11.1 | 246.6 |
| Chennai | 6.9 | 4.0 | 95.3 |
| Delhi-NCR | 11.8 | 5.7 | 150.8 |
| Hyderabad | 7.5 | 3.8 | 133.5 |
| Mumbai | 9.1 | 1.9 | 123.5 |
| Pune | 6.9 | 8.8 | 82.0 |
| Total | 56.8 | 35.4 | 831.7 |
Source: Savills India Research
CITY-WISE KEY TRENDS
· Bengaluru retained its lead as India’s top commercial leasing market with 14.6 mn sq. ft. of gross absorption. Key micro markets ORR and Peripheral East accounted for 40% and 21% of take-up. Technology and Flexible Workspace sectors dominated Q3 leasing, contributing 52% and 22%, respectively
· Delhi-NCR emerged as Q3’s top performer with 5.0 mn sq. ft. gross absorption, driven by 3.5 mn sq. ft. of fresh take-up and 1.5 mn sq. ft. pre-committed space. YTD leasing totaled 11.8 mn sq. ft., second to Bengaluru, led by IT-BPM (32%) and Flexible Workspaces (15%)
· Mumbai ranked third with 9.1 mn sq. ft. YTD absorption. Q3 contributed 2.4 mn sq. ft., with the BFSI sector sustaining its role as the key demand driver
· Hyderabad recorded 7.5 mn sq. ft. YTD, ranking fourth. Q3 activity (2.7 mn sq. ft.) was dominated by mid-sized deals (25,001–99,000 sq. ft.) accounting for 50% of leasing. IT-BPM led demand (33%), followed by Research & Consulting (19%) and Healthcare & Pharma (16%)
· Pune saw a 38% YoY rise in Q3 gross absorption, reaching 6.9 mn sq. ft. YTD (+4% YoY), driven by BFSI, IT-BPM, and Flexible Workspace uptake
· Chennai also registered 6.9 mn sq. ft. YTD absorption (+4% YoY), with IT-BPM (31%) and Engineering & Manufacturing (25%) leading Q3 leasing.