New Delhi, Oct 28 (NationPress) The commercial office real estate sector is witnessing a consistent growth across the top 7 cities, highlighted by a 6% annual increase in monthly office rentals – escalating from Rs 85 per square foot in the first nine months (9M) of 2024 to Rs 90 per sq. ft. in 9M 2025, according to a report released on Tuesday.

Unsurprisingly, the Information Technology and Information Technology Enabled Services (IT/ITeS) sector held the largest share at 27%, followed by coworking at 23% and BFSI at 18%.

“In comparison to last year's corresponding period, the IT/ITeS sector's leasing share saw a slight decline of 1%. Conversely, the coworking segment experienced a rise of 2% - increasing from a 21% share in 9M 2024 to a 23% share in 9M 2025,” stated Anarock Research.

Pune led the cities with a remarkable 97% growth in net office absorption, soaring from 3.14 million sq. ft. in 9M 2024 to approximately 6.2 million sq. ft. in 9M 2025. Kolkata was the sole city to register a decline in net office leasing, with a 19% drop.

Bengaluru recorded the highest net office leasing at approximately 9.95 million sq. ft., followed by Delhi-NCR with about 8.2 million sq. ft. and MMR with around 6.6 million sq. ft.

The demand for flexible workspaces has transformed post-pandemic, with companies adjusting to hybrid work models, seeking cost efficiency, and flexibility. Start-ups, corporates, and various enterprises favor coworking spaces over traditional offices.

Despite an increase in new office completions across the top 7 cities, average vacancy rates witnessed a marginal 3% decline year-on-year – dipping from 16.70% in 9M 2024 to 16.20% in 9M 2025.

Chennai remains the only city with a single-digit office vacancy of 8.90%, the lowest among all major cities, as per the report.

Global challenges, including tariffs, geopolitical tensions, and layoffs in the IT/ITeS sectors, have surprisingly not deterred the demand for office spaces in major cities.

Office absorption surged by 34% – scaling from 31.31 million sq. ft. in 9M 2024 to 42 million sq. ft. in 9M 2025.

“For instance, of the total gross office leasing of 58.28 million sq. ft. in 9M 2025, over 40% or approximately 23.34 million sq. ft. was leased by GCCs alone. Bengaluru topped the gross leasing at 8.3 million sq. ft. by GCCs, followed by Pune with 3.73 million sq. ft. and Chennai with 3.57 million sq. ft.,” highlighted Anuj Puri, Chairman – ANAROCK Group.

“Many companies are now in pursuit of high-quality Grade A office spaces equipped with superior infrastructure, amenities, and green-certified sustainability features,” Puri added.