NEW DELHI: Office rental prices in the top seven cities increased by 6% year-over-year, rising from approximately ₹85 per sq ft in the first nine months of 2024 to around ₹90 per sq ft in the same period of 2025, per Anarock Research.
Average vacancy rates experienced a slight decline of 3% annually, decreasing from 16.70% in the first nine months of 2024 to 16.20% in 2025.
Chennai stands out with the lowest office vacancy rate among top cities at 8.90%.
Office space absorption jumped 34%, increasing from about 31.31 million sq ft in 2024 to approximately 42 million sq ft in 2025. In contrast, during the similar period in 2019, net absorption was around 32.26 million sq ft, indicating a 30% growth in 2025.
Pune recorded the highest growth in net office absorption at 97%, rising from 3.14 million sq ft in 2024 to 6.2 million sq ft in 2025, while Kolkata saw a decline of 19% in net office leasing.
Bengaluru led the way in net office leasing with about 9.95 million sq ft, followed by Delhi-NCR with 8.2 million sq ft and Mumbai Metropolitan Region (MMR) with around 6.6 million sq ft.
| 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% |
“Global Capability Centers (GCCs) are a significant contributor to office leasing in the top seven cities. For example, out of a total gross office leasing of 58.28 million sq ft in the first nine months of 2025, over 40%, approximately 23.34 million sq ft, was attributed to GCCs,” stated Anuj Puri, Chairman of Anarock Group. Bengaluru topped the leasing chart with 8.3 million sq ft leased by GCCs, followed by Pune at 3.73 million sq ft and Chennai at 3.57 million sq ft.
New office completions also saw a 15% increase, rising from around 34.07 million sq ft in 9M 2024 to 39.21 million sq ft in 2025. Pune again led the cities with a remarkable 168% growth in office completions during this period.
In terms of new office supply, Bengaluru had the highest with approximately 10.41 million sq ft, followed by Pune with around 9.2 million sq ft. Both Hyderabad and MMR experienced annual declines in new office completions, down by 39% and 41%, respectively.
Notably, the IT/ITeS sector represented the largest share of leases at 27%, followed by co-working spaces at 23%, and BFSI at 18%. Although the IT/ITeS sector’s share dipped slightly by 1% compared to last year, co-working’s share increased from 21% to 23% over the same period.
