Will India's office market achieve record net absorption with a 35% surge in Q3 CY25?
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Synopsis
Discover how India's office market is witnessing unprecedented growth. With a staggering net absorption of 16.3 million square feet in Q3 CY 2025, this report reveals key insights into the evolving landscape and what it means for the future of real estate in the country.
Key Takeaways
- Net absorption reached 16.3 million square feet in Q3 CY 2025.
- Year-on-year growth of 35 percent reported.
- Delhi NCR and Bengaluru led in net absorption.
- IT-BPM sector dominated leasing activities.
- Year-to-date leasing is on track to exceed last year's records.
New Delhi, Sep 30 (NationPress) The office real estate sector in India has reported a remarkable net absorption of 16.3 million square feet across the leading eight cities during Q3 CY 2025, marking a 35 percent year-on-year (YoY) growth, as highlighted in a recent report.
For the initial nine months of this year, the sector has recorded a total of 44.3 million square feet in net absorption, achieving 87 percent of the total for 2024, according to data from real estate services firm Cushman & Wakefield.
Experts suggest that the industry is poised to surpass last year's record of 50.7 million square feet, potentially setting a new benchmark for annual absorption.
Net absorption reflects the net change in occupied office space, and the substantial rise in this metric indicates robust occupier activity and continuous expansion of office footprints across various sectors.
In Q3, Delhi NCR and Bengaluru led the way with net absorption figures of 3.8 million and 3.5 million square feet, respectively, together accounting for nearly half of the total net absorption.
Global Capability Centres made up 32 percent of leasing this quarter. The IT-BPM sector emerged as the largest contributor at 31 percent, followed by engineering and manufacturing at 18 percent, and BFSI at 14 percent. Flexible workspace operators accounted for 11 percent.
Mumbai, Chennai, and Pune have all exceeded their year-to-date net absorption from the previous year, with the latter two cities achieving their highest-ever year-to-date net absorption.
The Gross Leasing Volume (GLV) for Q3, which includes all leased office space during this period, reached 22.6 million square feet, reflecting a 2.6 percent decline year-on-year.
Year-to-date leasing totals 64.2 million square feet, positioning 2025 to possibly match or exceed last year's record of 88 million square feet.
“The market is firmly in an expansionary phase, with over 80 percent of Q3 leasing driven by new take-up. Almost 80 percent of Q3 completions were Grade-A+ assets, highlighting a clear shift towards premium, future-ready workspaces,” stated Anshul Jain, Chief Executive for India, SEA & APAC Office and Retail at Cushman & Wakefield.
Fresh leasing experienced a 21 percent quarter-on-quarter increase along with a minor YoY rise, as noted by the real estate services firm.
Point of View
I believe the current surge in India's office real estate market is a testament to the resilience and adaptability of the sector. With significant net absorption figures reported, it is evident that businesses are not only recovering but also expanding their footprints, signaling a strong recovery trajectory for the economy.
NationPress
30/09/2025
Frequently Asked Questions
What is net absorption in real estate?
Net absorption refers to the net change in occupied office space, indicating how much space has been leased or vacated during a specific period.
Which cities led the net absorption in Q3 CY 2025?
Delhi NCR and Bengaluru topped the net absorption charts with 3.8 million and 3.5 million square feet, respectively.
What sectors contributed to the leasing activity?
The IT-BPM sector was the largest contributor at 31%, followed by engineering and manufacturing at 18% and BFSI at 14%.
How does 2025's leasing compare to previous years?
Year-to-date leasing totals 64.2 million square feet, with potential to match or exceed last year's record of 88 million square feet.
What is driving the growth in the office market?
The growth is driven by fresh leasing activity, with over 80% of Q3 leasing attributed to new take-up and a shift towards premium, future-ready workspaces.
