India Records 57 MSF of Office Space Absorption Already This Year: Savills India

New Delhi, October 16, 2025: India’s office real estate sector has shown strong resilience, achieving 56.8 million sq. ft. of gross absorption year-to-date, despite global economic challenges and trade disruptions. The market is experiencing a phase of structural growth, fueled by consistent demand from sectors such as IT-BPM, Global Capability Centres (GCCs), BFSI, and flexible workspace providers. Although occupiers are navigating cautiously through changing market dynamics, we anticipate continued robust interest from international firms in Grade A office spaces, with total absorption expected to approach 75 million sq. ft. by the end of the year,” said Naveen Nandwani, Managing Director, Commercial Advisory and Transactions, Savills India.

Highlights of Q3 2025 for India Office Market

• India recorded 17.9 MSF of office absorption in Q3 2025, reflecting a 24 per cent YoY dip Delhi-NCR led leasing with 5 MSF, followed by Bengaluru (3.9 MSF) and Pune (2.8 MSF)

• Tech (33 per cent), flexible workspaces (15 per cent), and BFSI (13 per cent) drove overall demand
• Large deals (≥100,000 sq. ft.) comprised 42 per cent of total transactions Delhi-NCR and Bengaluru contributed 59 per cent of India’s total new completions (6.0 MSF)
• GCCs remained key occupiers, driving 30 per cent+ of total leasing (5.9 MSF) led by Bengaluru, Pune, and Hyderabad (4.8 MSF).

City-Wise Trends

• Bengaluru retained its lead as India’s top commercial leasing market with 14.6 MSF of gross absorption. Key micro markets ORR and Peripheral East accounted for 40 per cent and 21 per cent of take-up. Technology and Flexible Workspace sectors dominated Q3 leasing, contributing 52 per cent and 22 per cent, respectively
• Delhi-NCR emerged as Q3’s top performer with 5.0 MSF gross absorption, driven by 3.5 MSF of fresh take-up and 1.5 MSF pre-committed space. YTD leasing totaled 11.8 MSF, second to Bengaluru, led by IT-BPM (32 per cent) and Flexible Workspaces (15)
• Mumbai ranked third with 9.1 MSF YTD absorption. Q3 contributed 2.4 MSF, with the BFSI sector sustaining its role as the key demand driver
• Hyderabad recorded 7.5 MSF YTD, ranking fourth. Q3 activity (2.7 MSF) was dominated by mid-sized deals (25,001–99,000 sq. ft.) accounting for 50 per cent of leasing. IT-BPM led demand (33 per cent), followed by Research & Consulting (19 per cent) and Healthcare & Pharma (16 per cent)
• Pune saw a 38 per cent YoY rise in Q3 gross absorption, reaching 6.9 MSF YTD (+4 per cent YoY), driven by BFSI, IT-BPM, and Flexible Workspace uptake
• Chennai also registered 6.9 MSF YTD absorption (+4 per cent YoY), with IT-BPM (31 per cent) and Engineering & Manufacturing (25 per cent) leading Q3 leasing.