India’s commercial office market is witnessing steady growth in 2025, while the housing sector is stabilizing. ANAROCK Research data indicates that average office rentals in the top seven cities have increased by 6% year-on-year in the first nine months of the year.
During the same period, average monthly office rentals have risen from Rs 85 per sq. ft. in 2024 to Rs 90 per sq. ft. in 2025, with Bengaluru experiencing the most significant surge at about 9%, followed by consistent increases in Pune and Delhi-NCR.
Despite a rise in new office completions, vacancy rates have slightly decreased from 16.7% in 2024 to 16.2% in 2025. Chennai stands out with the lowest vacancy rate at 8.9%, indicating high tenant demand and limited supply.
Office absorption across the top seven cities reached an impressive 42 million sq. ft. in 2025, marking a 34% increase from the previous year and a 30% surge from pre-pandemic levels in 2019. Pune saw the highest annual growth in office leasing, jumping 97% from 3.14 million sq. ft. in 2024 to 6.2 million sq. ft. in 2025. Bengaluru led in total absorption at 9.95 million sq. ft., followed by Delhi-NCR at 8.2 million sq. ft. and Mumbai Metropolitan Region (MMR) at 6.6 million sq. ft.
Kolkata was the only city to experience a decline, with net leasing dropping by 19% compared to the previous year. Developers have been adding new supply, with new office completions increasing by 15% to 39.21 million sq. ft. during the period, up from 34.07 million sq. ft. last year. Pune witnessed a substantial 168% growth in new completions, driven by heightened demand from the IT and coworking sectors.
The IT and ITeS industry continued to lead office leasing, representing 27% of total absorption, while coworking spaces accounted for 23% and BFSI contributed 18%. Despite global challenges like trade tensions and layoffs, India’s major office markets have displayed resilience, with companies recognizing the long-term potential of India’s expanding economy and maintaining a robust demand for quality office spaces.