India’s office market grows with high demand

New Delhi

India’s office space market kept growing in the first quarter of 2025, thanks to strong demand and limited new supply. The vacancy rate dropped to 15.7%, the seventh straight quarter of decline, according to a report by Cushman & Wakefield. Since mid-2023, vacancies have fallen sharply from 18.45%.

In Q1 2025, 10.7 million square feet (MSF) of new office space was completed. Bengaluru, Pune, and Delhi-NCR alone added over 9 MSF. Hyderabad added 1.32 MSF, while Mumbai added only 0.18 MSF. Chennai, Kolkata, and Ahmedabad had no new supply, causing lower vacancies and higher rents there.

Office leasing remained strong, with gross leasing volume (GLV) reaching 20.3 MSF — a 5% rise from last year. Nearly 80% of this was fresh leasing, showing that companies are still expanding.

Anshul Jain, CEO for Cushman & Wakefield India, said global businesses continue to invest in Indian offices, especially in tech, research, and development. He noted that Global Capability Centers (GCCs) now make up over 30% of leasing.

India’s strong position in tech and business is attracting more companies. With inflation easing and expected interest rate cuts, this trend is likely to continue. Experts believe India’s office market will stay on a solid growth path throughout 2025.