Office Rentals in Top Seven Cities Surge Six Percent Yearly in 9M 2025
According to Anarock Research, office rentals in the top seven Indian cities witnessed a six percent yearly increase, from ₹85 per sq ft in 9M 2024 to ₹90 per sq ft in 9M 2025. The average vacancy levels also saw a marginal decline.
Office RentalsCommercial Real EstateAnarock ResearchOffice VacancyOffice AbsorptionReal Estate NewsOct 28, 2025
Average vacancy levels saw a marginal three percent yearly decline, from 16.70% in 9M 2024 to 16.20% in 9M 2025, across the top seven cities. Chennai is the only city to record single-digit office vacancy of 8.90%, the least among all top cities.
Office absorption continued to soar by 34%, from approximately 31.31 million sq ft in 9M 2024 to about 42 million sq ft in 9M 2025. Back in the corresponding period in 2019, when office demand was high, the net absorption stood at approximately 32.26 million sq ft in the top seven cities, indicating a 30% growth in 2025.
Among the cities, Pune witnessed the highest growth of 97% in net office absorption, from 3.14 million sq ft in 9M 2024 to about 6.2 million sq ft in 9M 2025. Kolkata was the only city to record a decline in net office leasing, of 19%.
Bengaluru witnessed the highest net office leasing of approximately 9.95 million sq ft, followed closely by Delhi-NCR with net office leasing of about 8.2 million sq ft and MMR with approximately 6.6 million sq ft.
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 million sq ft in 9M 2025, over 40% or approximately 23.34 million sq ft was leased by the GCCs alone. Bengaluru saw the highest gross leasing of 8.3 million sq ft by GCCs, followed by Pune with 3.73 million sq ft and Chennai with 3.57 million sq ft, according to Anuj Puri, chairman, Anarock Group.
Meanwhile, new office completion in the top seven cities witnessed a 15% jump in the period, from approximately 34.07 million sq ft in 9M 2024 to 39.21 million sq ft in 9M 2025. Among the top cities, Pune again saw the highest growth in office completions, 168%, in the given period.
In terms of overall new office supply, Bengaluru witnessed the highest at about 10.41 million sq ft, followed by Pune with approximately 9.2 million sq ft. Hyderabad and MMR were the only two cities to see yearly declines in new office completions, 39% and 41%, respectively.
IT/ITeS comprised the largest share of 27%, followed by co-working with 23% and BFSI with an 18% share. Compared to last year’s corresponding period, the IT/ITeS sector’s leasing share declined marginally by 1%. On the other hand, co-working saw an overall share increase of 2%, from a 21% share in 9M 2024 to a 23% share in 9M 2025.
Frequently Asked Questions
What is the average monthly rental for office spaces in the top seven cities as of 9M 2025?
The average monthly rental for office spaces in the top seven cities as of 9M 2025 is approximately ₹90 per sq ft.
Which city recorded the lowest office vacancy in 9M 2025?
Chennai recorded the lowest office vacancy in 9M 2025, with a single-digit office vacancy of 8.90%.
What was the percentage growth in office absorption in Pune from 9M 2024 to 9M 2025?
Pune witnessed the highest growth of 97% in net office absorption, from 3.14 million sq ft in 9M 2024 to about 6.2 million sq ft in 9M 2025.
Which city had the highest net office leasing in 9M 2025?
Bengaluru had the highest net office leasing in 9M 2025, with approximately 9.95 million sq ft.
What percentage of the total gross office leasing in 9M 2025 was leased by GCCs?
Over 40% or approximately 23.34 million sq ft of the total gross office leasing in 9M 2025 was leased by GCCs.
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