India’s commercial office market is showing steady growth this year, even as the housing segment stabilises. Data from ANAROCK Research reveals that average office rentals across the top seven cities rose by 6% year-on-year during the first nine months of 2025.
Average monthly office rentals increased from Rs 85 per sq. ft. in the first nine months of 2024 to Rs 90 per sq. ft. in the same period of 2025. Bengaluru saw the sharpest rise of about 9%, followed by steady gains in cities like Pune and Delhi-NCR.
Interestingly, despite higher new office completions, vacancy levels dropped slightly, from 16.7% in 2024 to 16.2% in 2025. Chennai stood out with the lowest vacancy at 8.9%, indicating strong tenant activity and limited supply.
Net office absorption across the top seven cities touched an impressive 42 million sq. ft. in 2025, up 34% from the same period last year. This figure is also 30% higher than pre-pandemic levels seen in 2019.
Pune recorded the highest yearly jump in office leasing, 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 at 8.2 million sq. ft. and Mumbai Metropolitan Region (MMR) at 6.6 million sq. ft.
Kolkata was the only city to register a decline, with net leasing down by 19% compared to last year.
Developers continued to add fresh supply, with new office completions increasing by 15% to 39.21 million sq. ft. during the period, compared to 34.07 million sq. ft. last year. Pune again led the pack, seeing a massive 168% growth in new completions, driven by rising demand from IT and coworking players.
The IT and ITeS sector continued to dominate office leasing, accounting for 27% of total absorption. Coworking spaces followed closely with 23%, while BFSI (banking, financial services, and insurance) contributed 18%.
Despite global challenges such as trade tensions, layoffs, and tariff concerns, India’s top office markets have remained resilient, mentioned report. The data suggests that companies continue to see long-term potential in India’s growing economy, maintaining strong demand for quality office spaces.