India’s office real estate sector is on track to surpass its previous annual absorption record, driven by strong demand from IT-BPM, Global Capability Centres (GCCs), BFSI, and flexible workspace operators. According to a Savills India report, the top six cities recorded 56.8 million sq ft of gross office absorption between January and September 2025. With new office supply rising 9.6% year-on-year to 35.4 million sq ft and the overall vacancy rate easing to 14%, the market reflects healthy expansion from both domestic and global occupiers.

The report stated that the market is on track to surpass the previous annual record of 75 million sq ft by year-end, driven by robust demand from IT-BPM, Global Capability Centres (GCCs), BFSI, and flexible workspace operators.

New office supply rose 9.6% year-on-year to 35.4 million sq ft, while the overall vacancy rate eased to 14%, reflecting healthy demand and steady expansion from domestic and global occupiers.

“India’s office sector has shown strong resilience despite global headwinds,” said Naveen Nandwani, Managing Director, commercial advisory and transactions, Savills India. “Consistent demand from IT, GCCs, and financial services continues to drive structural growth, with absorption likely to touch 75 million sq. ft. by the end of 2025.”

Delhi-NCR leads Q3 leasing; Bengaluru retains YTD lead

India recorded 17.9 million sq. ft. of office absorption in Q3 2025, a 24% year-over-year decline, as leasing activity moderated following a strong first half. Delhi-NCR led quarterly leasing with 5 million sq ft, followed by Bengaluru (3.9 million sq ft) and Pune (2.8 million sq ft).

Bengaluru, however, remained India’s largest office market with 14.6 million sq ft of year-to-date leasing, driven by technology firms and flexible workspace operators, which accounted for 52% and 22% of activity, respectively. Key areas, such as the Outer Ring Road and Peripheral East, made up more than 60% of the total take-up.

Delhi-NCR followed with 11.8 million sq ft YTD leasing, supported by strong demand from IT-BPM (32%) and co-working operators (15%). Mumbai ranked third with 9.1 million square feet, led by continued expansion in the BFSI sector.

Hyderabad recorded 7.5 million sq ft, driven by mid-sized deals, while Pune and Chennai each saw 6.9 million sq ft in YTD absorption, both posting modest 4% annual growth.

Supply rises 10% YoY; Delhi-NCR and Bengaluru dominate completions

New office completions reached 35.4 million sq ft in 2025 so far, up nearly 10% from last year. Delhi-NCR and Bengaluru together contributed 59% of all new supply, reflecting their position as key corporate hubs.

City-wise, Bengaluru led supply with 11.1 million sq ft, followed by Pune (8.8 million sq ft), Delhi-NCR (5.7 million sq ft), Chennai (4 million sq ft), Hyderabad (3.8 million sq ft), and Mumbai (1.9 mn sq ft). Bengaluru also retained the highest overall Grade A office stock at 246.6 million sq. ft., ahead of Delhi-NCR (150.8 million sq. ft.) and Hyderabad (133.5 million sq. ft.).