Office Space Leasing Surges 35% in Top Eight Cities: Cushman & Wakefield
Net leasing of office spaces witnessed a 35% increase in the July-September quarter across eight major Indian cities, driven by robust demand from domestic and international companies. While Delhi-NCR, Chennai, and Pune saw significant growth, Mumbai and Bengaluru experienced declines.
Office SpaceLeasingReal EstateCushman WakefieldIndian CitiesReal Estate PuneOct 01, 2025
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.
Frequently Asked Questions
What is net absorption in the context of real estate?
Net absorption in real estate refers to the net change in occupied office space. It is a key indicator of demand and shows the difference between the amount of space leased and the amount of space vacated during a specific period.
Which cities experienced the highest growth in office space leasing?
Delhi-NCR, Chennai, and Pune saw the highest growth in office space leasing. Delhi-NCR more than doubled its leasing to 3.79 million sq ft, Chennai's leasing jumped multifold to 2.28 million sq ft, and Pune's leasing increased by 64% to 2.54 million sq ft.
Why did Mumbai and Bengaluru see a decline in office space leasing?
The exact reasons for the decline in Mumbai and Bengaluru are not specified, but factors such as market saturation, economic conditions, and specific local challenges could play a role.
What are Global Capability Centers (GCCs) and how do they impact the office space market?
Global Capability Centers (GCCs) are large-scale facilities set up by multinational corporations to handle various business functions such as IT, R&D, and customer service. They significantly contribute to the demand for office space, especially in cities with a strong talent pool and business environment.
What does the future outlook for the office space market look like according to Cushman & Wakefield?
Cushman & Wakefield expects the office space market to continue its expansionary cycle, driven by long-term fundamentals such as the growth of GCCs, scaling of startups, and the resurgence of manufacturing and engineering. The volume of active deals in the pipeline suggests sustained and structural growth.
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