India’s top six cities recorded a sharp 26% annual rise in new office space supply during the September quarter, reaching 16.1 million sq. ft, according to data from real estate consultancy Vestian. The surge reflects developers’ confidence in the growing appetite for premium workspaces from both global and domestic companies.
Pune leads the rally
Pune topped the charts with 3.7 million sq ft of new office space, an impressive 164% jump from the same period last year. The city’s robust technology ecosystem, rising number of global capability centres (GCCs), and improved infrastructure have made it a magnet for occupiers seeking cost-effective alternatives to larger metros.
Delhi-NCR followed closely with 3.1 million sq. ft of fresh supply, marking a 35% year-on-year increase, supported by sustained demand in Gurugram and Noida. Chennai also emerged as a standout performer, with new supply jumping a remarkable 320% to 2.1 million sq. ft. Mumbai saw its numbers double to 1.8 million sq. ft, driven largely by new developments in the suburbs and Navi Mumbai.
Mixed trends in southern markets
Bengaluru and Hyderabad, traditionally the country’s most active office markets witnessed a slowdown. Bengaluru’s new supply fell 6% to 3.4 million sq ft, while Hyderabad saw a sharper decline of 51% to 2 million sq. ft. Analysts attribute the dip to developers spacing out deliveries amid high inventory levels from previous quarters.
Kolkata, the seventh major city tracked by Vestian, reported no new supply during the July–September quarter.
Absorption stays strong
Despite uneven supply trends, demand remained resilient. Office space absorption rose 6% year-on-year to 19.69 million sq. ft across the top seven cities. Vestian’s CEO, Shrinivas Rao, noted that “the third quarter of 2025 reported the highest absorption of the current year, primarily driven by GCCs.” These centres set up by multinational corporations to manage technology, finance, and R&D operations are fueling much of India’s office demand.
Rao added that strong leasing momentum, combined with renewed construction activity, signals sustained growth for the sector. “Robust absorption, healthy supply, and a diversified occupier base are expected to drive the next wave of expansion,” he said.
Developers and REITs expand aggressively
Major real estate players such as DLF, Tata Realty & Infrastructure, Hiranandani Group, Embassy Group, Prestige Estates, Sattva Group, and RMZ Group are among those adding to the office supply pipeline. Several developers are also integrating flexible workspace options and sustainability features to attract multinational occupiers focused on ESG compliance.
India’s four listed Real Estate Investment Trusts (REITs), Sattva-Blackstone-backed Knowledge Realty Trust, Embassy Office Parks REIT, K Raheja’s Mindspace Business Parks REIT, and Brookfield India Real Estate Trust continue to play a central role in shaping the market. Backed by rent-yielding assets, these REITs are expanding portfolios through both greenfield and brownfield projects to meet evolving tenant needs.
Global factors driving local growth
The outlook remains optimistic despite global economic uncertainty. Vestian’s report highlighted that India’s diversified occupier base and its position as a talent hub are cushioning the sector from external headwinds. The ongoing tightening of H-1B visa norms in the US is also expected to further boost office demand, as more GCCs expand operations in India to manage offshore talent.
Experts say that with businesses consolidating operations and upgrading to high-quality spaces, India’s office market is entering a new phase of maturity. Tier-1 cities continue to lead, but emerging corridors such as Pune, Chennai, and Noida are quickly narrowing the gap.
For now, all signs point to continued developer confidence and corporate expansion. The coming quarters could see new supply accelerate further, marking one of the strongest periods of post-pandemic recovery for India’s commercial real estate market.
