India’s office real estate market absorbed nearly 57 million square feet of office space across the top six cities between January and September 2025, signaling continued strength in the commercial segment despite global economic uncertainty, according to a new report by Savills India, published by Hindustan Times.
The consultancy noted that the market is on track to exceed its previous annual record of 75 million square feet by the end of the year, fueled by sustained demand from the IT-BPM sector, Global Capability Centres (GCCs), banking and financial services (BFSI), and flexible workspace operators.
New office supply increased 9.6% year over year to 35.4 million square feet during the period, while the overall vacancy rate declined to 14%, reflecting steady leasing momentum and expansion by both domestic and international occupiers.
“India’s office sector has shown strong resilience despite global headwinds,” said Naveen Nandwani, managing director of commercial advisory and transactions at Savills India. “Consistent demand from IT, GCCs, and financial services continues to drive structural growth, with absorption likely to touch 75 million square feet by the end of 2025.”
In the third quarter, India recorded 17.9 million square feet of office absorption, a 24% decline from the same period last year as leasing activity moderated after a strong first half. Delhi-NCR led quarterly leasing with 5 million square feet, followed by Bengaluru with 3.9 million square feet and Pune with 2.8 million square feet.
Bengaluru, however, maintained its position as India’s largest office market, logging 14.6 million square feet of leasing activity year to date. The city’s demand was primarily driven by technology firms and flexible workspace operators, accounting for 52% and 22% of activity, respectively. The Outer Ring Road and Peripheral East submarkets together contributed more than 60% of the total take-up.
Delhi-NCR followed with 11.8 million square feet of year-to-date leasing, supported by strong activity from IT-BPM (32%) and co-working operators (15%). Mumbai ranked third with 9.1 million square feet, led by continued growth in the BFSI sector.
Hyderabad recorded 7.5 million square feet of absorption, driven by mid-sized deals, while Pune and Chennai each reported 6.9 million square feet, both reflecting around 4% annual growth.
New office completions rose nearly 10% from a year earlier to 35.4 million square feet in 2025, with Delhi-NCR and Bengaluru accounting for 59% of the total. Bengaluru led new supply additions with 11.1 million square feet, followed by Pune (8.8 million square feet), Delhi-NCR (5.7 million square feet), Chennai (4 million square feet), Hyderabad (3.8 million square feet), and Mumbai (1.9 million square feet).
Bengaluru also maintained the country’s largest Grade A office stock at 246.6 million square feet, ahead of Delhi-NCR (150.8 million square feet) and Hyderabad (133.5 million square feet).
Savills reported that large transactions exceeding 100,000 square feet comprised 42% of all Q3 deals, underscoring strong occupier confidence in Grade A spaces. GCCs accounted for over 30% (5.9 million square feet) of total leasing during the year, led by Bengaluru, Pune, and Hyderabad, which together contributed 4.8 million square feet.
Technology firms (33%), flexible workspaces (15%), and BFSI (13%) remained the top sectors driving office demand as occupiers consolidated and expanded operations in high-quality, cost-efficient spaces across major cities.