9 months ago
India's Top Cities See 26% Rise in New Office Supply
Imagine lots of companies are looking for new places to work, especially big international ones.
Because of this, companies that build office buildings are making a lot more new ones!
In the third part of 2025, there was a 26% increase in new office buildings compared to last year across major Indian cities.
Pune built the most new office space, with a huge jump of 164%!
Chennai also saw a big increase.
However, some cities like Bengaluru and Hyderabad actually built a bit less new office space this time.
People are renting these new offices really fast, which is good news for the building companies.
This is happening even though there are some uncertain things happening in the world, because many companies still want to set up or expand their offices in India.
India's top six cities saw a 26% year-on-year increase in new office supply, reaching 16.1 million sq ft in Q3 2025.
Pune led with the highest new office supply at 3.70 million sq ft, a 164% increase from the previous year.
Chennai experienced a significant 320% jump in new office supply, while Mumbai's supply doubled.
Bengaluru and Hyderabad saw decreases in new office supply by 6% and 51% respectively.
Office space absorption rose by 6% to 19.69 million sq ft, driven primarily by Global Capability Centers (GCCs).
- Who
- Real estate consultant Vestian
- What
- Reported a 26% annual increase in new office space supply across India's top six cities, with Pune showing the largest growth.
- Where
- India's top six cities (Pune, Delhi-NCR, Chennai, Mumbai, Bengaluru, Hyderabad), with specific mention of Kolkata.
- When
- During the September quarter of 2025 (July-September period)
- Why
- Developers are capitalizing on strong demand for premium workspaces from global and domestic firms, with robust absorption driven by GCCs and potential further demand due to H-1B visa restrictions.
Market Performance
Market Performance
New Office Supply Growth
Market Performance
Pune saw a 164% increase, Chennai 320%, and Mumbai doubled its supply.
Market Performance
Bengaluru experienced a 6% drop, and Hyderabad saw a 51% fall in new office supply.
Key facts
- Total New Office Supply (Top 6 Cities, Q3 2025)
- 16.1 million sq ft
- Annual Growth in New Supply
- 26%
- Highest New Supply City
- Pune (3.70 million sq ft)
- Pune Supply Growth
- 164%
- Delhi-NCR New Supply
- 3.10 million sq ft
- Chennai New Supply Growth
- 320%
- Bengaluru New Supply Change
- -6%
- Hyderabad New Supply Change
- -51%
Quotes
Shrinivas Rao
CEO of Vestian
“The third quarter of 2025 reported the highest absorption of the current year, primarily driven by GCCs (global capability centres).”
thehindubusinessline.com
“This robust demand kept the office market buoyant amid global trade uncertainties and geopolitical tensions.”
thehindubusinessline.com
