Office Rentals in Top Cities Surge 6% Yearly in 9M 2025, Vacancy Dips 3%

 

Office Rentals in Top Cities Surge 6% Yearly in 9M 2025, Vacancy Dips 3%

 

• Avg. monthly office rentals in Top 7 cities stood at INR 85 per sq. ft. in 9M 2024 & increased to INR 90 per sq. ft. in 9M 2025; Bengaluru saw the highest 9% jump
• Office vacancy dropped from 16.70% in 9M 2024 to 16.20% in 9M 2025: Chennai’s office vacancy the least at 8.90%
• Net office absorption in Top 7 cities at its peak at approx. 42 Mn sq. ft. in 9M 2025, increasing by 34% since last yr same period; 30% more than 2019 same period
• Pune witnessed the highest yearly jump of 97% in net absorption – from 3.14 Mn sq. ft. in 9M 2024 to approx. 6.2 Mn sq. ft. in 9M 2025
• New office completion saw 15% jump in the period – from approx. 34.07 Mn sq. ft. in 9M 2024 to 39.21 Mn sq. ft. in 9M 2025
• Pune again saw the highest growth in office completions - 168%
• Sector-wise, IT/ITeS comprised the largest absorption share of 27%, followed by coworking with 23% & BFSI with 18% share

 

Mumbai, 28 October 2025: While the Indian residential market is seen to be stabilizing amid tapering sales and new supply, the commercial office real estate sector is growing steadily across the top 7 cities. Latest ANAROCK Research data reveals a 6% yearly rise in monthly office rentals – from approx. INR 85 per sq. ft. in 9M 2024 to approx. INR 90 per sq. ft. in 9M2025.

Interestingly, 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.

 

Office Vacancy in Top 7 Cities
City	9M2025	9M2024
Bangalore	12.20%	13.00%
MMR	14.90%	14.80%
NCR	22.00%	23.30%
Chennai	8.90%	9.40%
Hyderabad	26.50%	26.60%
Pune	11.85%	11.50%
Kolkata	17.80%	18.30%
PAN India	16.20%	16.70%

Source: ANAROCK Research & Advisory

 

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 Mn sq. ft. in 9M 2024 to approx. 42 Mn 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 Mn sq. ft. in the top 7 cities – indicating a 30% growth in 2025.

Among the cities, 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 Mn sq. ft., followed closely by Delhi-NCR with net office leasing of approx. 8.2 Mn sq. ft. and MMR with approx. 6.6 Mn sq. ft.

 

NET Office Absorption (In Million Sqft)
City	9M2025	9M2024	% Change
Bangalore	9.95	8.15	22%
MMR	6.6	5.05	31%
NCR	8.2	6.61	24%
Chennai	4.5	2.88	56%
Hyderabad	5.7	4.42	29%
Pune	6.2	3.14	97%
Kolkata	0.85	1.055	-19%
Total	42	31.305	34%

Source: ANAROCK Research & Advisory

 

“Multiple factors are driving office space demand in the country despite all headwinds. GCCs are a major driver of office space leasing in the top 7 cities,” says Anuj Puri, Chairman – ANAROCK Group. “For instance, out of the total gross office leasing of 58.28 Mn sq. ft. in 9M 2025, over 40% or approx. 23.34 Mn sq. ft. was leased by the GCCs alone. Bengaluru saw the highest gross leasing of 8.3 Mn sq. ft. by GCCs, followed by Pune with 3.73 Mn sq. ft. and Chennai with 3.57 Mn sq. ft.”

“Several companies are now looking for high-quality Grade A office spaces with better infrastructure and amenities, and green-certified sustainability features,” adds Puri. “This 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.”

Meanwhile, new office completion in the top 7 cities witnessed a 15% jump in the period – from approx. 34.07 Mn sq. ft. in 9M 2024 to 39.21 Mn 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 approx. 10.41 Mn sq. ft., followed by Pune with approx. 9.2 Mn sq. ft. Hyderabad and MMR were the only two cities to see yearly declines in new office completions – 39% and 41%, respectively.

 

New Office Completion (In Million Sqft)
City	9M2025	9M2024	% Change
Bangalore	10.41	8.7	20%
MMR	3.4	5.77	-41%
NCR	6.7	3.73	80%
Chennai	3.5	2.73	28%
Hyderabad	5.9	9.68	-39%
Pune	9.2	3.43	168%
Kolkata	0.1	0.03	100%
Total	39.21	34.07	15%

Source: ANAROCK Research & Advisory

 

Sector-wise Leasing Trends

Predictably, IT/ITeS comprised the largest share of 27%, followed by coworking with 23% and BFSI with a 18% share. 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.