As office completions and leasing jump across top cities, rentals have recorded notable growth during 9M 2025.

 While the Indian residential market is seen to be stabilizing amid tapering sales and new supply, Unlike the residential realty which is witnessing tapering sales and supply ,the commercial office real estate sector is growing steadily across the top 7 cities. According to a latest Anarock report, there is  a 6% yearly rise in monthly office rentals – from approx. INR 85 per sq. ft. in 9M 2024 to nearly INR 90 per sq. ft. in 9M2025.Notably , despite increased new office completions in the top 7 cities, average vacancy levels saw a marginal 3% yearly decline – from 16.70% in 9M 2024 to 16.20% in 9M 2025. Chennai is the only city to record single-digit office vacancy of 8.90% – the least among all top cities.

Source: Anarock Research & Advisory

The office market seems to be insulated from the global turmoil.  Global headwinds including tariffs, geopolitical tensions, and layoffs in IT/ITeS sectors seem to have had no negative impact on office space demand in the top cities. Office absorption continued to soar by 34% – from approx. 31.31 million sq. ft. in 9M 2024 to approx. 42 million sq. ft. in 9M 2025. Back in the corresponding period in 2019 when office demand was high, the net absorption stood at approx. 32.26  million sq. ft. in the top 7 cities – indicating a 30% growth in 2025.

 Pune witnessed the highest growth of 97% in net office absorption – from 3.14 Mn sq. ft. in 9M 2024 to approx. 6.2 Mn sq. ft. in 9M 2025. Kolkata was the only city to record a decline in net office leasing, of 19%.Bengaluru witnessed the highest net office leasing of approx. 9.95 million sq. ft., followed closely by Delhi-NCR with net office leasing of approx. 8.2 million sq. ft. and MMR with nearly. 6.6 million sq. ft. 

Source: Anarock Research & Advisory

 Notwithstanding the global headwinds, a number of factors are contributing to the  office space demand .According to Anuj Puri, Chairman, Anarock,  GCCs are a major driver of office space leasing in the top 7 cities “Out of the total gross office leasing of 58.28 million sq. ft. in 9M 2025, over 40% or approx. 23.34 million sq. ft. was leased by the GCCs alone. Bengaluru saw the highest gross leasing of 8.3 million sq. ft. by GCCs, followed by Pune with 3.73 million sq. ft. and Chennai with 3.57 million sq. ft”, he says. 

Today, many companies are looking for high-quality Grade A office spaces with better infrastructure and amenities, and green-certified sustainability features which has also increased the demand for new office spaces equipped with these amenities and features. “Supply is following this growing demand. Also, India’s economy and demography continue to grow, giving both domestic and multi-national businesses headroom to expand their operations”, says Puri.

Meanwhile, new office completions in the top 7 cities witnessed a 15% jump in the period – from approx. 34.07 million sq. ft. in 9M 2024 to 39.21 million sq. ft. in 9M 2025. Among the top cities, Pune again saw the highest growth in office completions – 168% – in the given period.

In terms of overall new office supply, Bengaluru witnessed the highest at about. 10.41 Mn sq. ft., followed by Pune with nearly 9.2 million sq. ft. Hyderabad and MMR were the only two cities to see yearly declines in new office completions – 39% and 41%, respectively.

Source: ANAROCK Research & Advisory

Talking of sector-wise leasing trends, IT/ITeS comprised the largest share of 27%, followed by coworking with 23% and BFSI with a 18% share in 9M2025. Compared to last year’s corresponding period, the IT/ITeS sector’s leasing share declined marginally by 1%. On the other hand, coworking saw an overall share increase of 2% – from a 21% share in 9M 2024 to a 23% share in 9M 2025.Demand for flexible workspaces has been evolving post-pandemic, with companies adapting to hybrid work models, cost efficiency, and flexibility. Start-ups and corporates and several other enterprises with s hybrid work model prefer coworking spaces over regular office spaces.