Delhi-NCR Office Space Leasing Surges: A Closer Look at the Market Trends
Office space leasing in Delhi-NCR has more than doubled to 2.62 million square feet in the second quarter of 2025, driven by strong demand in Gurugram and Noida.
Office SpaceReal EstateDelhincrLeasingCorporate DemandReal Estate MumbaiJul 25, 2025
Vestian's report on India's top seven office markets, released on Friday, showed a 10 per cent rise in absorption or leasing of office space to 18.79 million square feet during the second quarter of this calendar year. The consultant attributed the rise in demand to increased activities in three southern cities—Bengaluru, Hyderabad, and Chennai—whose combined share rose to 59 per cent from 46 per cent in the January-March quarter.
Bengaluru retained its dominant position with leasing of 5.62 million square feet in the latest June quarter, marking a 32 per cent increase from the year-ago period. In Hyderabad, the demand grew by 5 per cent to 3.56 million square feet, while Chennai saw a 4 per cent increase in leasing activities to 1.82 million square feet.
In Delhi-NCR, the office space absorption surged by 130 per cent to 2.62 million square feet in the second quarter of 2025. The share of the Noida market in the leasing activities was 27 per cent, while Gurugram contributed the rest. The leasing of office space in Mumbai was 2 per cent higher at 3.45 million square feet, led by Navi Mumbai with a 52 per cent share. However, Pune witnessed a drop of 52 per cent to 1.37 million square feet.
Kolkata, a smaller office market, saw a 52 per cent growth in leasing to 0.35 million square feet during the April-June period. Shrinivas Rao, CEO of Vestian, commented on the demand trend, stating, 'As more enterprises are transitioning back to in-office operations and several grade-A office projects are planned to be completed in the second half of 2025, the growth momentum is anticipated to continue with an increase in office utilisation ratio.'
During the January-June period of 2025, the office space leasing in India's seven major cities stood at 36.75 million square feet, an increase of 21 per cent from the corresponding period of the preceding year. The consultant projected that absorption would surpass 75 million square feet by the end of 2025.
Frequently Asked Questions
Which cities saw the highest increase in office space leasing in the second quarter of 2025?
Bengaluru, Hyderabad, and Chennai saw the highest increase in office space leasing in the second quarter of 2025, with Bengaluru leading the pack.
What is the projected total office space absorption for 2025?
The consultant projects that office space absorption will surpass 75 million square feet by the end of 2025.
Why is there a surge in demand for office space in Gurugram and Noida?
The surge in demand for office space in Gurugram and Noida is driven by robust demand from corporates and the availability of grade-A office projects.
How did Mumbai's office space leasing perform in the second quarter of 2025?
Mumbai's office space leasing increased by 2 per cent to 3.45 million square feet in the second quarter of 2025, led by Navi Mumbai with a 52 per cent share.
What factors are contributing to the growth in office space leasing in Delhi-NCR?
The growth in office space leasing in Delhi-NCR is attributed to the transition of enterprises back to in-office operations and the completion of several grade-A office projects.
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