New Delhi, Oct 7 India’s office market continued its strong momentum well into the third quarter of the year (July-September) with the top 8 markets recording gross leasing of 17.8 million square feet (mn sq ft) of office transactions, a report said on Tuesday.
Global Capability Centres (GCC) remained the largest end-user occupier segment with gross leasing of 5.7 million square feet (mn sq ft) in the quarter, while third-party IT Services recorded a significant improvement of 38 per cent year-on-year (YoY) with gross leasing of 3.2 mn sq ft in Q3 2025.
"Meanwhile, with the new completion of 12.4 mn sq ft in Q3, the office space stock crossed over the 1 billion square feet milestone," Knight Frank India said in its report.
However, continued demand and modest growth in new completions have led to vacancy to decline to 14.5 per cent.
“India’s office market has once again demonstrated resilience, building on last year’s record highs. The strong year-to-date growth underlines the enduring confidence of global and domestic occupiers in India’s economic fundamentals," Knight Frank India Chairman and Managing Director Shishir Baijal said.
While the external environment remains volatile, India’s large talent pool and stable policy framework continue to reinforce its position as a preferred destination for high-quality office investments, he added.
Bengaluru continued its frontrunner position, recording 4.2 mn sq ft of transactions in Q3 2025. Hyderabad with 2.9 mn sq ft and Chennai with 2.8 mn sq ft followed Bengaluru.
Hyderabad also stood out due to YoY growth of 33 per cent, largely driven by strong demand from GCCs, the report said.
According to the report, rents across all major markets registered growth on a year-on-year basis. Kolkata led with a 14 per cent increase, followed by Mumbai (11 per cent), NCR (9 per cent), Hyderabad (9 per cent), and Bengaluru (6 per cent).
This marked the 13th consecutive quarter of stable or rising rents across India’s office markets
At the same time, total gross leasing on a year-to-date (January – September 2025) basis was recorded at 66.7 mn sq ft, registering a growth of 24 per cent as compared to the same period in 2024, putting the market firmly on track to surpass the previous annual record.
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