Indian office demand outpaced supply in Q3 2025, with rising rents and near-record flex space demand.

Office space demand in India exceeded supply in Q3 2025, with national vacancy rates stable at 16.4%. Year-to-date leasing reached 50.9 million sq. ft., up 8% from last year, led by Bengaluru with 14 million sq. ft. Pune, Mumbai, and Chennai saw at least 40% year-over-year demand growth. Grade A leasing was strong across five major cities, each recording 6–8 million sq. ft. Growth was driven by technology firms, Global Capability Centres, and BFSI sectors, while flex space demand hit near-record levels. New supply rose 15% to 16.6 million sq. ft. in Q3, with Pune leading, and Bengaluru and Pune accounting for 54% of year-to-date completions. Rental rates continued to rise, reflecting strong occupier confidence and expectations of demand nearing 70 million sq. ft. by year-end.