Office Space Leasing Surges 35% in Top Eight Cities: Cushman & Wakefield

NEW DELHI: Net leasing of office spaces saw a 35% increase across eight major cities during the July-September period, totaling 16.25 million square feet, according to real estate consultant Cushman & Wakefield (C&W). This growth was primarily driven by fresh take-up from both domestic and overseas companies, indicating a strong expansionary cycle in the office sector.

Real estate consultant Cushman & Wakefield (C&W) data revealed that net leasing or absorption of office spaces increased in Delhi-NCR, Chennai, Hyderabad, Pune, Kolkata, and Ahmedabad. However, the net demand declined in the Mumbai and Bengaluru markets.

Net absorption is a key indicator of real estate demand, representing the net change in occupied office space. Anshul Jain, Chief Executive - India, SEA & APAC Office and Retail at Cushman & Wakefield, highlighted, “India's office sector continues to demonstrate structural strength. The market is now firmly in an expansionary cycle, with over 80 per cent of Q3 (July-September) leasing driven by fresh take-up - a clear sign of occupiers growing their footprint, not just renewing space.”

This growth is being powered by long-term fundamentals, including the rise of Global Capability Centers (GCCs) and the scaling of startups, as well as the resurgence of manufacturing and engineering. Among cities, Bengaluru saw a 14% decline in net leasing to 3.46 million sq ft during July-September compared to 4.01 million sq ft in the year-ago period. Mumbai, too, witnessed a 19% fall in net leasing of workspace to 2.13 million sq ft from 2.64 million sq ft.

However, the office demand in Delhi-NCR more than doubled to 3.79 million sq ft from 1.52 million sq ft. In Chennai, the net leasing jumped multifold to 2.28 million sq ft from 0.47 million sq ft. The net leasing of office space in Pune increased 64% to 2.54 million sq ft from 1.55 million sq ft. In Hyderabad, the net leasing of office space grew 7% to 1.42 million sq ft from 1.32 million sq ft. Kolkata saw net leasing rise to 0.43 million sq ft from 0.37 million sq ft. Lastly, the net leasing of office space rose marginally to 0.21 million sq ft during July-September from 0.20 million sq ft in the year-ago period.

Veera Babu, Executive Managing Director, Tenant Representation - India at Cushman & Wakefield, noted, “Net absorption is often seen as the real demand for space, and this quarter's numbers show that the momentum in India's office sector is both widespread and sustained.” He added that cities like Delhi-NCR, Pune, and Chennai are setting new benchmarks in leasing and absorption. “What's particularly encouraging is the volume of active deals currently in the pipeline, which suggests that this is not a one-off spike but part of a deeper, more structural growth cycle,” Babu said.