Despite persistent global economic uncertainties and cautious corporate expansion, India’s Grade-A office market has remained largely resilient. According to fresh data from Anarock, average office vacancy levels declined marginally by around 3 percentage points in the first nine months of 2025, even as average rentals climbed nearly 6 percent year-on-year across major cities.
Data showed that Chennai is the only city to record single-digit office vacancy of 8.90 percent - the least among all top seven cities.
Market observers said that the trend underscores a market-balancing act — where steady leasing by domestic firms and flexible workspace operators continues to offset global slowdown pressures on multinational occupiers.
ANAROCK research data showed that despite increased new office completions in the top seven cities, average vacancy levels saw a marginal decline of only 3-percentage point yearly – from 16.70 percent in 9M 2024 to 16.20 percent in nine months of 2025.
Pune and Bengaluru have office vacancy of 11.85 percent and 12.2 percent, respectively. Mumbai Metropolitan Region (MMR) has 14.9 percent office vacancy while Kolkata has 17.8 percent vacancy. Hyderabad has highest office vacancy of 26.5 percent while the micro-markets of the National Capital Region (NCR) witnessed an office vacancy of 22 percent.
Surge in office rentals and absorption
Data shows a 6 percent annual rise in monthly office rentals – from approximately Rs 85 per sq. ft. in first nine month of 2024 to around Rs 90 per sq. ft. in 9M2025.
Office absorption soared by 34 percent – from approximately 31.31 million square feet (msf) in 9M 2024 to around 42 msf in 9M 2025.
Among the cities, Pune witnessed the highest growth of 97 percent in net office absorption - from 3.14 msf in 9M 2024 to approximately 6.2 msf in 9M 2025. Kolkata was the only city to record a decline in net office leasing, of 19 percent.
Bengaluru witnessed the highest net office leasing of approximately 9.95 msf, followed closely by Delhi-NCR with net office leasing of around 8.2 msf and MMR with 6.6 msf.
Anuj Puri, Chairman – ANAROCK Group, said that GCCs are a major driver of office space leasing in the top seven cities. For instance, out of the total gross office leasing of 58.28 msf in 9M 2025, over 40 percent or approximately 23.34 msf was leased by the GCCs alone.
“Several companies are now looking for high-quality Grade A office spaces with better infrastructure and amenities, and green-certified sustainability features. Supply is following this growing demand,” he said.
In terms of overall new office supply, Bengaluru witnessed the highest at approximately 10.41 msf, followed by Pune with approximately 9.2 msf.
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