Top-6 Indian cities see 26% jump in new office supply
What's the story
India's six largest cities have reported a 26% annual growth in new office space supply for the September quarter, according to US-based real estate consultant Vestian. The total new supply stood at 16.1 million square feet during this period. The surge is attributed to developers capitalizing on the strong demand for premium workspaces from both global and domestic firms.
City performance
Pune saw highest growth in new office supply
Pune topped the list with a whopping 3.7 million square feet of new office space supply in the July-September period, marking an impressive 164% year-on-year growth. Delhi-NCR followed suit with a 35% increase to 3.1 million square feet. Chennai saw an even bigger jump of 320% to 2.1 million square feet while Mumbai's supply doubled to reach 1.8 million square feet during this period.
Market dip
Bengaluru, Hyderabad see major decline
Despite being India's largest office market, Bengaluru saw a 6% decline in new office supply to 3.4 million square feet. Hyderabad also witnessed a major drop of 51% to two million square feet during the same period. Interestingly, Kolkata was the only one among these cities that did not see any fresh supply of office space in the latest quarter tracked by Vestian.
Market outlook
Vestian CEO notes strong demand kept Indian office market resilient
Vestian CEO Shrinivas Rao noted that the third quarter of 2025 witnessed the highest absorption of the year, mainly due to Global Capability Centers (GCCs). He said this strong demand kept the office market resilient amid global trade uncertainties and geopolitical tensions. Rao also highlighted a surge in construction activity with significant supply additions across key markets.