India's top six cities have witnessed a significant surge in new office space supply, with a 26% annual increase during the September quarter, reaching 16.1 million sq ft. This growth is fueled by developers aiming to capitalize on the strong demand for premium workspaces from both global and domestic firms.
Among the top cities, Pune has emerged as a leader, recording the highest new office supply at 3.7 million sq ft during the July-September period. This represents a remarkable 164% increase compared to the same period last year. Pune's rise as a preferred business hub is attributed to the growing demand from global capability centers (GCCs) and domestic corporations seeking flexible workspaces.
Other cities also experienced substantial growth in office space supply. Delhi-NCR saw a 35% increase, with new supply reaching 3.1 million sq ft. Chennai recorded the most significant jump, with a 320% increase to 2.1 million sq ft. Mumbai also doubled its new office stock, reaching 1.8 million sq ft during the quarter.
However, not all major office markets experienced growth. Bengaluru, the largest office market in India, saw a 6% decrease in new supply, falling to 3.4 million sq ft. Hyderabad also experienced a significant decline, with new supply dropping by 51% to 2 million sq ft. Interestingly, Kolkata, the seventh major city tracked by Vestian, reported no new office space additions during the September quarter.
Shrinivas Rao, CEO of Vestian, noted that the third quarter of 2025 saw the highest absorption of office space for the year, primarily driven by the expansion of GCCs. He believes that this robust demand has kept the Indian office market buoyant despite global trade uncertainties and geopolitical tensions. Rao also highlighted the increased construction activity, with significant supply additions across key markets.
Looking ahead, Rao anticipates continued growth in the office market, driven by robust absorption, healthy supply, and a diversified occupier base. He also suggests that potential restrictions on H-1B visas may further boost demand for office spaces in India as more GCCs expand their operations in the country.
According to Vestian, the total leasing or absorption of office space across seven major cities in India rose by 6% to 19.69 million sq ft during the July-September period of 2025. Major developers such as DLF Ltd, Tata Realty & Infrastructure, Hiranandani Group, Embassy Group, Prestige Estates, Sattva Group, and RMZ Group are actively involved in constructing these office spaces.
