New Delhi, Oct 7 (NationPress) India’s office sector has maintained its robust momentum into the third quarter of 2025 (July-September), with the leading eight markets achieving a remarkable gross leasing of 17.8 million square feet (mn sq ft) in office transactions, according to a report released on Tuesday.

The Global Capability Centres (GCC) emerged as the predominant segment of end-user occupiers, contributing 5.7 mn sq ft in gross leasing during the quarter. Additionally, third-party IT services saw a notable 38 per cent year-on-year (YoY) growth, amounting to 3.2 mn sq ft in Q3 2025.

Furthermore, the completion of 12.4 mn sq ft in Q3 pushed the total office space stock past the 1 billion square feet milestone, as noted in the report by Knight Frank India.

Despite ongoing demand and a modest increase in new completions, vacancy rates improved, reducing to 14.5 per cent.

“India’s office market has once again shown its resilience, building on the record highs of the previous year. The strong growth year-to-date emphasizes the unwavering confidence of both global and domestic occupiers in India’s economic fundamentals,” stated Shishir Baijal, Chairman and Managing Director of Knight Frank India.

While external circumstances remain unpredictable, India’s extensive talent pool and stable policy environment continue to solidify its status as a preferred location for high-quality office investments, he added.

Bengaluru maintained its leading position, marking 4.2 mn sq ft of transactions in Q3 2025, followed by Hyderabad with 2.9 mn sq ft and Chennai with 2.8 mn sq ft.

Hyderabad also distinguished itself with a 33 per cent YoY growth, primarily driven by robust demand from GCCs, according to the report.

The report indicates that rental rates across all major markets have increased year-on-year. Kolkata led with a 14 per cent rise, followed by Mumbai at 11 per cent, NCR at 9 per cent, Hyderabad at 9 per cent, and Bengaluru at 6 per cent.

This represents the 13th consecutive quarter of stable or rising rents within India’s office markets.

On a year-to-date basis (January – September 2025), total gross leasing amounted to 66.7 mn sq ft, marking a 24 per cent growth compared to the same period in 2024, positioning the market firmly on track to exceed the previous annual record.