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Notwithstanding the buoyancy in pan-India absorption, the absorption share of top 10 commercial office hubs is on decline.
According to a recent Vestian report, though top 10 micro-markets continue to dominate the absorption, yet their absorption share is on decline, dropping from 82% in Q3 2024 and 80% in Q2 2025, to 70% in Q3 2025. In terms of value , the top 10 micro-marketsreported had absorption of 13.9 msf in Q3 2025, registering a decline of 10% over the year and 8% compared to the preceding quarter. Despite an overall increase in pan-India absorption, the reduced share of the top 10 micro-markets underscores increasing geographical diversification. This diversification can be attributed to enhanced intracity connectivity, ample availability of grade-A and sustainable office spaces, competitive rentals to minimize operating costs, and maturing residential localities nearby.
| Absorption (Mm Sq.ft) | Q3 2025 | Q2 2025 | Q3 2024 | Q3 2025 vs Q2 2025 | Q3 2025 vs Q3 2024 |
| Top 10 Micro-Markets | 13.9 | 15.1 | 15.3 | -8% | -10% |
| Pan-India | 19.7 | 18.8 | 18.6 | 5% | 6% |
Note: The top ten micro-markets by absorption in each quarter have been considered for analysis
Source: Vestian Research
Office Market Summary: Q3 2025
| City | Absorption (Mn sq ft) | Y-o-Y Change (%) | Q-o-Q Change (%) | New Completions (Mn sq ft) | Y-o-Y Change (%) | Q-o-Q Change (%) |
| Bengaluru | 4.63 | -30% | -18% | 3.40 | -6% | -13% |
| Chennai | 2.57 | 28% | 42% | 2.10 | 320% | 40% |
| Hyderabad | 2.58 | -7% | -27% | 2.00 | -51% | -26% |
| Mumbai | 2.98 | 32% | -14% | 1.80 | 100% | 64% |
| Kolkata | 0.42 | 285% | 21% | 0.00 | NA | NA |
| Pune | 2.48 | 6% | 81% | 3.70 | 164% | -14% |
| NCR | 4.01 | 61% | 53% | 3.10 | 35% | 158% |
| Total | 19.69 | 6% | 5% | 16.10 | 26% | 10% |
Source: Vestian Research
Bengaluru continued to lead the pan-India absorption with 4.63 million sq ft in Q3 2025, followed by NCR at 4.01 million sq ft and Mumbai at 2.98 million sq ft. Though Kolkata recorded the lowest absorption of 0.42 million sq ft in Q3 2025, yet it registered a 21% quarter-on-quarter and 285% year-on-year increase, primarily due to a low base effect.
IT-ITeS sector accounted for 31% of the total absorption reported in Q3 2025, registering a sharp decline from nearly 50% in Q2 2025. Meanwhile, BFSI sector’s share more than doubled to 15% from 6% during the same period, underscoring growing occupier interest from financial institutions. The share of Flexible Spaces remained stable at 14% compared to the previous quarter.
As absorption increased, construction activity also rose in Q3 2025, with new completions reaching 16.1 million sq ft — 10% quarterly and 26% annual surge. The increase in supply was largely driven by project completions in Pune, Bengaluru, and NCR, which together contributed 63% of the total new completions across the top seven cities. Pune led new supply additions with 3.70 million sq ft, accounting for 23% of the pan-India supply, followed closely by Bengaluru with 3.40 million sq ft (21% share). Chennai witnessed an annual increase of 320% in new office supply, driven by a low base effect. The city added 2.10 million sq. ft. of new office space—its highest supply addition in the past seven quarters.
The third quarter of 2025, according to Shrinivas Rao, CEO, Vestian, reported the highest absorption of the current year, primarily driven by GCCs.”This robust demand kept the office market buoyant amid global trade uncertainties and geopolitical tensions. Construction activity also gained momentum, with significant supply additions across the key markets. Robust absorption, healthy supply, and a diversified occupier base are expected to drive the next wave of growth in the coming quarters. H-1B visa restrictions may further amplify the demand for offices in India as more and more GCCs expand their footprint in India, says Rao”
