Indian office leasing dips 1% in Q3 2025, but remains up 8% year-to-date, driven by GCCs and domestic demand.

Office leasing in India’s top seven cities is projected to decline 1% in Q3 2025 to 172 million sq. ft., driven by weaker demand in Bengaluru, Hyderabad, and Delhi-NCR, though Mumbai, Pune, and Chennai saw strong growth. Despite the quarterly dip, total leasing for the first nine months rose 8% year-on-year to 509 million sq. ft., led by Global Capability Centers (GCCs) and domestic firms, with GCCs accounting for nearly 20 million sq. ft. Demand in Bengaluru led with 14 million sq. ft., followed by strong growth in Pune, Mumbai, and Chennai. Flex space leasing reached 9.2 million sq. ft., near an all-time high, reflecting agile workplace trends. New completions rose 15% to 16.6 million sq. ft. in Q3, with Pune leading. Supply reached 41.4 million sq. ft. year-to-date, up 10%, while vacancy remained steady at 16.4% despite increases in Pune and Delhi-NCR. Rental growth continued, supported by strong demand across major markets.