New Delhi, Oct 7 India’s office market surpassed 1 billion square feet in the third quarter of 2025, and the year-to-date (YTD) volumes grew 24 per cent YoY, positioning the market for an annual record, a report said on Tuesday.
Despite the market being on track for a fresh annual high, the report from real estate services firm Knight Frank noted that the leasing during the quarter primarily came from Grade A leasing, which represented 88 per cent of quarterly volumes and 92 per cent year-to-date, the report noted.
Bengaluru, Mumbai, and the National Capital Region accounted for half of the volumes transacted, and Bengaluru led with 4.2 million square ft in Q3 2025.
Hyderabad and Chennai contributed significantly to the volume growth during the quarter, achieving a year-over-year increase of 33 per cent and 9 per cent, respectively.
Global Capability Centres (GCCs) accounted for approximately 5.7 million sq ft of office space transactions, making up the largest share at 32 per cent among all occupier segments. Bengaluru was the top choice for this segment, accounting for a massive 65 per cent of the GCC-related leasing activity in Q3 2025, the report noted.
Further, rental levels in the larger office markets of Mumbai, NCR and Bengaluru grew by 11 per cent, 9 per cent and 6 per cent YoY, respectively. With global AI adoption accelerating, India’s deep talent pool and cost advantages continue to strengthen its appeal as a hub for outsourced IT services, the report noted.
The Quarters to Sell (QTS) indicator has remained below 18 months in the eight key markets throughout the past year. QTS indicates the time needed to absorb current inventory based on the average sales pace of the past eight quarters. The stability of QTS in India's office market, despite an uptick in inventory, underscores the resilience of market fundamentals, the report noted.
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