{"id":362771,"date":"2025-10-28T21:43:06","date_gmt":"2025-10-28T16:13:06","guid":{"rendered":"https:\/\/www.technologyforyou.org\/?p=362771"},"modified":"2025-10-28T21:43:06","modified_gmt":"2025-10-28T16:13:06","slug":"office-rentals-in-top-cities-surge-6-yearly-in-9m-2025-vacancy-dips-3","status":"publish","type":"post","link":"https:\/\/www.technologyforyou.org\/office-rentals-in-top-cities-surge-6-yearly-in-9m-2025-vacancy-dips-3\/","title":{"rendered":"Office Rentals in Top Cities Surge 6% Yearly in 9M 2025, Vacancy Dips 3%\u00a0"},"content":{"rendered":"<ul style=\"font-weight: 400;\">\n<li><em>Avg. monthly office rentals in Top 7 cities stood at INR 85 per sq. ft. in 9M 2024 &amp; increased to INR 90 per sq. ft. in 9M 2025; Bengaluru saw the highest 9% jump<\/em><\/li>\n<li><em>Office vacancy dropped from 16.70% in 9M 2024 to 16.20% in 9M 2025: Chennai\u2019s office vacancy the least at 8.90%<\/em><\/li>\n<li><em>Net office absorption in Top 7 cities at its peak at approx. 42 Mn sq. ft. in 9M 2025, increasing by 34% since last yr same period; 30% more than 2019 same period<\/em><\/li>\n<li><em>Pune witnessed the highest yearly jump of 97% in net absorption \u2013 from 3.14 Mn sq. ft. in 9M 2024 to approx. 6.2 Mn sq. ft. in 9M 2025<\/em><\/li>\n<li><em>New office completion saw 15% jump in the period \u2013 from approx. 34.07 Mn sq. ft. in 9M 2024 to 39.21 Mn sq. ft. in 9M 2025<\/em><\/li>\n<li><em>Pune again saw the highest growth in office completions &#8211; 168%<\/em><\/li>\n<li><em>Sector-wise, IT\/ITeS comprised the largest absorption share of 27%, followed by coworking with 23% &amp; BFSI with 18% share<\/em><em>\u00a0<\/em><\/li>\n<\/ul>\n<p style=\"font-weight: 400;\"><strong>Mumbai, 28 October 2025:\u00a0<\/strong>While the Indian residential market is seen to be stabilizing amid tapering sales and new supply, the commercial office real estate sector is growing steadily across the top 7 cities. Latest ANAROCK Research data reveals a 6% yearly rise in monthly office rentals \u2013 from approx. INR 85 per sq. ft. in 9M 2024 to approx. INR 90 per sq. ft. in 9M2025.<\/p>\n<p style=\"font-weight: 400;\">Interestingly, despite increased new office completions in the top 7 cities, average vacancy levels saw a marginal 3% yearly decline \u2013 from 16.70% in 9M 2024 to 16.20% in 9M 2025. Chennai is the only city to record single-digit office vacancy of 8.90% &#8211; the least among all top cities.<\/p>\n<table style=\"font-weight: 400;\" width=\"296\">\n<tbody>\n<tr>\n<td colspan=\"3\" width=\"296\"><strong>Office Vacancy in Top 7 Cities<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"118\"><strong>City<\/strong><\/td>\n<td width=\"89\"><strong>9M2025<\/strong><\/td>\n<td width=\"89\"><strong>9M2024<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"118\"><strong>Bangalore<\/strong><\/td>\n<td width=\"89\">12.20%<\/td>\n<td width=\"89\">13.00%<\/td>\n<\/tr>\n<tr>\n<td width=\"118\"><strong>MMR<\/strong><\/td>\n<td width=\"89\">14.90%<\/td>\n<td width=\"89\">14.80%<\/td>\n<\/tr>\n<tr>\n<td width=\"118\"><strong>NCR<\/strong><\/td>\n<td width=\"89\">22.00%<\/td>\n<td width=\"89\">23.30%<\/td>\n<\/tr>\n<tr>\n<td width=\"118\"><strong>Chennai<\/strong><\/td>\n<td width=\"89\">8.90%<\/td>\n<td width=\"89\">9.40%<\/td>\n<\/tr>\n<tr>\n<td width=\"118\"><strong>Hyderabad<\/strong><\/td>\n<td width=\"89\">26.50%<\/td>\n<td width=\"89\">26.60%<\/td>\n<\/tr>\n<tr>\n<td width=\"118\"><strong>Pune<\/strong><\/td>\n<td width=\"89\">11.85%<\/td>\n<td width=\"89\">11.50%<\/td>\n<\/tr>\n<tr>\n<td width=\"118\"><strong>Kolkata<\/strong><\/td>\n<td width=\"89\">17.80%<\/td>\n<td width=\"89\">18.30%<\/td>\n<\/tr>\n<tr>\n<td width=\"118\"><strong>PAN India<\/strong><\/td>\n<td width=\"89\"><strong>16.20%<\/strong><\/td>\n<td width=\"89\"><strong>16.70%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"font-weight: 400;\"><em>Source: ANAROCK Research &amp; Advisory<\/em><strong>\u00a0<\/strong><\/p>\n<p style=\"font-weight: 400;\">Global headwinds including tariffs, geopolitical tensions, and layoffs in IT\/ITeS sectors seem to have had no negative impact on office space demand in the top cities. Office absorption continued to soar by 34% \u2013 from approx. 31.31 Mn sq. ft. in 9M 2024 to approx. 42 Mn sq. ft. in 9M 2025. Back in the corresponding period in 2019 when office demand was high, the net absorption stood at approx. 32.26 Mn sq. ft. in the top 7 cities \u2013 indicating a 30% growth in 2025.<\/p>\n<p style=\"font-weight: 400;\">Among the cities, Pune witnessed the highest growth of 97% in net office absorption &#8211; from 3.14 Mn sq. ft. in 9M 2024 to approx. 6.2 Mn sq. ft. in 9M 2025. Kolkata was the only city to record a decline in net office leasing, of 19%.<\/p>\n<p style=\"font-weight: 400;\">Bengaluru witnessed the highest net office leasing of approx. 9.95 Mn sq. ft., followed closely by Delhi-NCR with net office leasing of approx. 8.2 Mn sq. ft. and MMR with approx. 6.6 Mn sq. ft.<\/p>\n<table style=\"font-weight: 400;\" width=\"392\">\n<tbody>\n<tr>\n<td colspan=\"4\" width=\"392\"><strong>NET Office Absorption (In Million Sqft)<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>City<\/strong><\/td>\n<td width=\"87\"><strong>9M2025<\/strong><\/td>\n<td width=\"87\"><strong>9M2024<\/strong><\/td>\n<td width=\"102\"><strong>% Change<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>Bangalore<\/strong><\/td>\n<td width=\"87\">9.95<\/td>\n<td width=\"87\">8.15<\/td>\n<td width=\"102\">22%<\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>MMR<\/strong><\/td>\n<td width=\"87\">6.6<\/td>\n<td width=\"87\">5.05<\/td>\n<td width=\"102\">31%<\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>NCR<\/strong><\/td>\n<td width=\"87\">8.2<\/td>\n<td width=\"87\">6.61<\/td>\n<td width=\"102\">24%<\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>Chennai<\/strong><\/td>\n<td width=\"87\">4.5<\/td>\n<td width=\"87\">2.88<\/td>\n<td width=\"102\">56%<\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>Hyderabad<\/strong><\/td>\n<td width=\"87\">5.7<\/td>\n<td width=\"87\">4.42<\/td>\n<td width=\"102\">29%<\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>Pune<\/strong><\/td>\n<td width=\"87\">6.2<\/td>\n<td width=\"87\">3.14<\/td>\n<td width=\"102\">97%<\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>Kolkata<\/strong><\/td>\n<td width=\"87\">0.85<\/td>\n<td width=\"87\">1.055<\/td>\n<td width=\"102\">-19%<\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>Total<\/strong><\/td>\n<td width=\"87\"><strong>42<\/strong><\/td>\n<td width=\"87\"><strong>31.305<\/strong><\/td>\n<td width=\"102\"><strong>34%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"font-weight: 400;\"><em>Source: ANAROCK Research &amp; Advisory<\/em><\/p>\n<p style=\"font-weight: 400;\">\u201cMultiple factors are driving office space demand in the country despite all headwinds. GCCs are a major driver of office space leasing in the top 7 cities,\u201d says\u00a0<strong>Anuj Puri, Chairman \u2013 ANAROCK Group<\/strong>. \u201cFor instance, out of the total gross office leasing of 58.28 Mn sq. ft. in 9M 2025, over 40% or approx. 23.34 Mn sq. ft. was leased by the GCCs alone. Bengaluru saw the highest gross leasing of 8.3 Mn sq. ft. by GCCs, followed by Pune with 3.73 Mn sq. ft. and Chennai with 3.57 Mn sq. ft.\u201d<\/p>\n<p style=\"font-weight: 400;\">\u201cSeveral companies are now looking for high-quality Grade A office spaces with better infrastructure and amenities, and green-certified sustainability features,\u201d adds Puri. \u201cThis has also increased the demand for new office spaces equipped with these amenities and features. Supply is following this growing demand. Also, India\u2019s economy and demography continue to grow, giving both domestic and multi-national businesses headroom to expand their operations.\u201d<\/p>\n<p style=\"font-weight: 400;\">Meanwhile, new office completion in the top 7 cities witnessed a 15% jump in the period \u2013 from approx. 34.07 Mn sq. ft. in 9M 2024 to 39.21 Mn sq. ft. in 9M 2025. Among the top cities, Pune again saw the highest growth in office completions &#8211; 168% &#8211; in the given period.<\/p>\n<p style=\"font-weight: 400;\">In terms of overall new office supply, Bengaluru witnessed the highest at approx. 10.41 Mn sq. ft., followed by Pune with approx. 9.2 Mn sq. ft. Hyderabad and MMR were the only two cities to see yearly declines in new office completions \u2013 39% and 41%, respectively.<\/p>\n<table style=\"font-weight: 400;\" width=\"392\">\n<tbody>\n<tr>\n<td colspan=\"4\" width=\"392\"><strong>New Office Completion (In Million Sqft)<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>City<\/strong><\/td>\n<td width=\"87\"><strong>9M2025<\/strong><\/td>\n<td width=\"87\"><strong>9M2024<\/strong><\/td>\n<td width=\"102\"><strong>% Change<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>Bangalore<\/strong><\/td>\n<td width=\"87\"><strong>10.41<\/strong><\/td>\n<td width=\"87\"><strong>8.7<\/strong><\/td>\n<td width=\"102\"><strong>20%<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>MMR<\/strong><\/td>\n<td width=\"87\"><strong>3.4<\/strong><\/td>\n<td width=\"87\"><strong>5.77<\/strong><\/td>\n<td width=\"102\"><strong>-41%<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>NCR<\/strong><\/td>\n<td width=\"87\"><strong>6.7<\/strong><\/td>\n<td width=\"87\"><strong>3.73<\/strong><\/td>\n<td width=\"102\"><strong>80%<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>Chennai<\/strong><\/td>\n<td width=\"87\"><strong>3.5<\/strong><\/td>\n<td width=\"87\"><strong>2.73<\/strong><\/td>\n<td width=\"102\"><strong>28%<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>Hyderabad<\/strong><\/td>\n<td width=\"87\"><strong>5.9<\/strong><\/td>\n<td width=\"87\"><strong>9.68<\/strong><\/td>\n<td width=\"102\"><strong>-39%<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>Pune<\/strong><\/td>\n<td width=\"87\"><strong>9.2<\/strong><\/td>\n<td width=\"87\"><strong>3.43<\/strong><\/td>\n<td width=\"102\"><strong>168%<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>Kolkata<\/strong><\/td>\n<td width=\"87\"><strong>0.1<\/strong><\/td>\n<td width=\"87\"><strong>0.03<\/strong><\/td>\n<td width=\"102\"><strong>100%<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"115\"><strong>Total<\/strong><\/td>\n<td width=\"87\"><strong>39.21<\/strong><\/td>\n<td width=\"87\"><strong>34.07<\/strong><\/td>\n<td width=\"102\"><strong>15%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"font-weight: 400;\"><em>Source: ANAROCK Research &amp; Advisory<\/em><\/p>\n<p style=\"font-weight: 400;\"><strong>Sector-wise Leasing Trends<\/strong><\/p>\n<p style=\"font-weight: 400;\">Predictably, IT\/ITeS comprised the largest share of 27%, followed by coworking with 23% and BFSI with a 18% share. Compared to last year\u2019s corresponding period, the IT\/ITeS sector\u2019s leasing share declined marginally by 1%. On the other hand, coworking saw an overall share increase of 2% &#8211; from a 21% share in 9M 2024 to a 23% share in 9M 2025.<\/p>\n<p style=\"font-weight: 400;\">Demand for flexible workspaces has been evolving post-pandemic, with companies adapting to hybrid work models, cost efficiency, and flexibility. Start-ups and corporates and several other enterprises with s hybrid work model prefer coworking spaces over regular office spaces.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Avg. monthly office rentals in Top 7 cities stood at INR 85 per sq. ft. in 9M 2024 &amp; increased to INR 90 per sq. ft. in 9M 2025; Bengaluru saw the highest 9% jump Office vacancy dropped from 16.70% in 9M 2024 to 16.20% in 9M 2025: Chennai\u2019s office vacancy the least at 8.90% [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14083],"tags":[],"class_list":{"0":"post-362771","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-technology-industry-news"},"_links":{"self":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts\/362771","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/comments?post=362771"}],"version-history":[{"count":1,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts\/362771\/revisions"}],"predecessor-version":[{"id":362772,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts\/362771\/revisions\/362772"}],"wp:attachment":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/media?parent=362771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/categories?post=362771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/tags?post=362771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}