India’s Office Market Maintains Upward Trajectory In Q1 Amid Strong Occupier Demand

New Delhi: India’s office real estate market maintained its upward trajectory in Q1, driven by robust leasing and tight new supply, pushing overall vacancy down for the seventh consecutive quarter to 15.7 per cent — a cumulatively steep drop of 275 basis points (bps) from 18.45 per cent in Q2 2023, a report showed on Wednesday.

Supply constraints and strong occupier demand in the first quarter of the year across India’s top eight office markets have resulted in a drop-in vacancy rate by 55 basis points (bps) to 15.7 per cent from 16.25 per cent in Q4 2024, according to Cushman & Wakefield’s latest Q1 2025 Office Market Report. The total new office completions in Q1 2025 stood at 10.7 million square feet (MSF).

Bengaluru (3.28 MSF), Pune (3.21 MSF), and Delhi-NCR (2.71 MSF) contributed a combined 86 per cent (9.2 MSF) of this new supply.

Hyderabad saw a supply of 1.32 MSF, while Mumbai registered supply of 0.18 MSF. Cities like Chennai, Kolkata and Ahmedabad recorded no new supply, resulting in lower vacancy rates and higher rentals in these markets.