New Delhi, Sep 30 India’s office real estate market saw its net absorption touching 16.3 million square feet across the top eight cities in Q3 CY 2025, a 35 per cent year-on-year (YoY) increase, a report said on Tuesday.
In the first nine months of the year, the market recorded 44.3 million square feet of net absorption, reaching 87 per cent of the total for 2024, a report from real estate services firm Cushman & Wakefield said.
Analysts said the sector is on course to exceed last year's record of 50.7 million square feet, potentially establishing a new annual absorption high.
Net absorption represents the net change in occupied office space and the huge growth of this measure underscored the depth of occupier activity and the sustained expansion of office footprints across sectors, the report said.
Delhi NCR and Bengaluru topped the quarter with 3.8 million and 3.5 million square feet, respectively, together representing nearly half of total net absorption.
Global Capability Centres accounted for 32 per cent of leasing in the quarter. IT-BPM was the largest sector at 31 per cent, followed by engineering and manufacturing at 18 per cent, and BFSI at 14 per cent. Flexible workspace operators represented 11 per cent.
Mumbai, Chennai, and Pune surpassed their year-to-date (YTD) net absorption levels from the same period last year, and the latter two cities recorded their highest-ever YTD net absorption.
Gross Leasing Volume (GLV) in Q3, which is the total amount of office space leased during this quarter, including renewals and new leases, reached 22.6 million square feet, a decline of 2.6 per cent year-on-year.
Year-to-date leasing totals 64.2 million square feet, positioning 2025 to potentially match or exceed last year's record of 88 million square feet.
“The market is now firmly in an expansionary cycle, with over 80 per cent of Q3 leasing driven by fresh take-up. Nearly 80 per cent of Q3 completions were Grade-A+ assets, underscoring the decisive shift toward premium, future-ready workspaces," said Anshul Jain, Chief Executive – India, SEA & APAC Office and Retail, Cushman & Wakefield.
Fresh leasing marked a 21 per cent quarter-on-quarter increase and a slight YoY uptick, the real estate services firm noted.
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