Top 15 Micro Markets in India Drive 65% of Office Demand and 76% of New Supply
India's office real estate sector is significantly influenced by 15 high-activity micro markets across major cities, contributing to a majority of office space demand and supply.
Office DemandReal EstateMicro MarketsIndiaReitReal Estate NewsJun 20, 2025
Between 2020 and Q1 2025, these zones absorbed 166.8 million sq. ft. of office space and added 172.2 million sq. ft. of new supply, 76% of India’s total. Most are in secondary and peripheral business districts, increasingly favoured by Global Capability Centres (GCCs) and flexible workspace providers.
Since 2020, 73% of GCC leasing, around 70 million sq. ft., was concentrated in the top 10 micro markets, particularly in Bengaluru’s Outer Ring Road (ORR) and Whitefield, Hyderabad’s Suburban Business District (SBD) and Off-SBD, and Chennai’s Old Mahabalipuram Road (OMR) Zone one and Madhya Kailash-Perungudi (MPR). Flex space operators have also focused on these hubs, accounting for 59% of the 38 million sq. ft. of flex leasing, with a 54% compound annual growth rate (CAGR) in the segment.
Vacancy in India’s Grade A office stock stands at 16.2%, though nearly 30% of the micro markets operate below 10% vacancy. Prime zones like Central Business District (CBD) in Bengaluru, Guindy in Chennai, and Aerocity and Cybercity in Delhi NCR remain resilient with rising rentals. Mumbai and Delhi NCR host the costliest locations, including Bandra Kurla Complex (BKC), Worli-Parabhadevi, and Golf Course Road.
Of the 488 million sq. ft. of Real Estate Investment Trusts (REIT) worthy Grade A stock in India, 56% lies within the top 10 micro markets, with 72% either listed or REIT-ready. India’s cost-effective rentals and growing infrastructure continue to attract global occupiers aiming for consolidation and scale.
Frequently Asked Questions
Which cities are driving the majority of office demand in India?
The cities driving the majority of office demand in India are Bengaluru, Delhi National Capital Region (NCR), Pune, Hyderabad, Chennai, and Mumbai.
What percentage of new supply has been added by the top 15 micro markets since 2020?
The top 15 micro markets have added 76% of the new supply in India since 2020.
Which micro markets are favored by Global Capability Centres (GCCs)?
Global Capability Centres (GCCs) favor micro markets such as Bengaluru’s Outer Ring Road (ORR) and Whitefield, Hyderabad’s Suburban Business District (SBD) and Off-SBD, and Chennai’s Old Mahabalipuram Road (OMR) Zone one and Madhya Kailash-Perungudi (MPR).
What is the current vacancy rate in India’s Grade A office stock?
The current vacancy rate in India’s Grade A office stock is 16.2%.
What percentage of REIT-worthy Grade A stock is located in the top 10 micro markets?
56% of the REIT-worthy Grade A stock in India is located within the top 10 micro markets.
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