India’s commercial office market has maintained steady growth through 2025, contrasting with a stabilising housing sector. According to ANAROCK Research, average office rentals across the top seven cities rose by 6% year-on-year during the first nine months of 2025. The average monthly rent increased from ₹85 per sq. ft. in 2024 to ₹90 per sq. ft. in 2025. Bengaluru recorded the sharpest rise at 9%, followed by steady increases in Pune and Delhi-NCR.
Despite the addition of new office spaces, vacancy levels declined slightly from 16.7% in 2024 to 16.2% in 2025. Chennai had the lowest vacancy rate at 8.9%, reflecting strong tenant demand and limited new supply.
Office absorption remained robust, with net leasing across the top seven cities reaching 42 million sq. ft., marking a 34% rise from last year and 30% above pre-pandemic levels. Pune registered the highest increase in office leasing activity—up 97% from 3.14 million sq. ft. in 2024 to 6.2 million sq. ft. in 2025. Bengaluru led in total absorption with 9.95 million sq. ft., followed by Delhi-NCR with 8.2 million sq. ft. and Mumbai Metropolitan Region (MMR) with 6.6 million sq. ft. Kolkata was the only city to record a decline, with net leasing dropping by 19%.
Developers expanded new supply by 15%, bringing total completions to 39.21 million sq. ft., up from 34.07 million sq. ft. the previous year. Pune led with a 168% surge in completions, driven by strong demand from the IT and coworking sectors.
The IT and ITeS sector accounted for 27% of total leasing activity, followed by coworking at 23% and BFSI at 18%. Despite global economic uncertainties, including trade tensions and layoffs, India’s top office markets remained resilient. The report highlights that companies continue to view India as a key long-term growth destination, sustaining solid demand for quality office spaces.
