India’s top six cities witnessed a 26% annual growth in new supply of office spaces during the September quarter to 16.1 million sq ft as developers look to capitalise on the strong demand for premium workspaces from global and domestic firms, according to Vestian.US-based real estate consultant Vestian data showed that the new supply of office space was the highest in Pune at 3.70 million sq ft during the July-September period, an increase of 164% from the year-ago period.In Delhi-NCR, the new office supply increased 35% to 3.10 million sq ft.
The fresh supply of office space in Chennai jumped 320% to 2.1 million sq ft, while the supply doubled in Mumbai to 1.80 million sq ft.However, Bengaluru, the biggest office market in India, witnessed a 6% drop in new office supply to 3.40 million sq ft.In Hyderabad, too, the new supply fell 51% to 2 million sq ft during the July-September period of this calendar year.Interestingly, Kolkata, the seventh major city tracked by Vestian, saw no fresh supply of office space during the latest September quarter.Vestian CEO Shrinivas Rao said, “The third quarter of 2025 reported the highest absorption of the current year, primarily driven by GCCs (global capability centres). This robust demand kept the office market buoyant amid global trade uncertainties and geopolitical tensions.” He noted that construction activity also gained momentum, with significant supply additions across key markets.”Robust absorption, healthy supply, and a diversified occupier base are expected to drive the next wave of growth in the coming quarters. H-1B visa restrictions may further amplify the demand for offices in India as more and more GCCs expand their footprint in India,” Rao said.According to Vestian, the leasing or absorption of office space rose 6% to 19.69 million sq ft during the July-September period of 2025 across seven major cities in the country.Major developers who are constructing office spaces include DLF Ltd, Tata Realty & Infrastructure, Hiranandani Group, Embassy Group, Prestige Estates, Sattva Group, and RMZ Group.There are four listed Real Estate Investment Trusts (REITs) that are backed by rent-yielding office assets. They have a huge portfolio of office assets and are also expanding through both greenfield and brownfield routes.The four listed REITs are Sattva-Blackstone backed Knowledge Realty Trust, Embassy Office Parks REIT, K Raheja-backed Mindspace Business Parks REIT, and Brookfield India Real Estate Trust.
