India’s commercial real estate sector witnessed strong momentum in the third quarter of 2025, with its top six cities collectively recording a 26% year-on-year surge in new office supply, amounting to 16.1 million sq. ft., according to a report by Vestian. The growth was driven by rising demand for premium workspaces from Global Capability Centres (GCCs) and expanding domestic enterprises.
Pune emerged as the standout performer, registering a 164% jump in new office stock to 3.7 million sq. ft., propelled by large-scale occupier demand and rapid infrastructure development. Delhi-NCR followed with 3.1 million sq. ft., marking a 35% increase, while Chennai witnessed a dramatic 320% rise to 2.1 million sq. ft. as new business districts took shape. Mumbai too posted strong gains, with new supply doubling to 1.8 million sq. ft.
In contrast, Bengaluru and Hyderabad, traditionally key office hubs, experienced declines of 6% and 51%, respectively, amid project delays and a cautious approach from developers. Kolkata, however, recorded no fresh supply during this period.
Vestian’s founding member and CEO, Shrinivas Rao, noted that Q3 2025 saw the highest office space absorption of the year, with total leasing activity touching 19.69 million sq. ft. This, he said, underscores India’s growing appeal as a global workspace destination, particularly for technology and service-oriented firms.
Rao highlighted that the combination of robust demand, diversified occupier interest, and sustained construction momentum will drive the next growth phase of India’s commercial real estate sector. He also pointed out that tightening H-1B visa norms in the United States could further accelerate demand, as more multinational companies relocate operations and workforce functions to India.
Major real estate developers, including DLF Ltd, Tata Realty, Hiranandani Group, Embassy Group, Prestige Estates, and Sattva, are ramping up construction pipelines to cater to the expanding market. At the same time, listed Real Estate Investment Trusts (REITs) — such as Embassy Office Parks REIT, Mindspace Business Parks REIT, Brookfield India REIT, and Sattva-Blackstone’s Knowledge Realty Trust — are scaling their portfolios through strategic new developments and acquisitions.
With healthy leasing activity, expansion by large corporates, and increased investor confidence, India’s office market is poised to remain one of the most resilient and rapidly expanding segments in the Asia-Pacific real estate landscape.
