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Net leasing of office spaces across eight major Indian cities rose significantly in the past quarter, reflecting strong demand from both domestic and international companies, according to Cushman & Wakefield. While Delhi-NCR, Chennai, Pune, Hyderabad, Kolkata, and Ahmedabad recorded higher absorption levels, Mumbai and Bengaluru saw declines. Executives from Cushman & Wakefield highlighted that the expansion cycle is supported by long-term fundamentals such as the rise of global capability centres, manufacturing, and the growth of start-ups.
Net leasing of office spaces across eight leading Indian cities rose by 35 per cent during the July-September quarter, reaching 16.25 million sq ft. Data from Cushman & Wakefield indicated that the growth was fuelled by stronger demand from both domestic and overseas firms. Advertisement
According to the consultancy, net leasing - which reflects the net change in occupied office space and is considered a key indicator of demand - registered increases in Delhi-NCR, Chennai, Hyderabad, Pune, Kolkata, and Ahmedabad. However, the Mumbai and Bengaluru markets witnessed declines.
Anshul Jain, Chief Executive - India, SEA & APAC Office and Retail at Cushman & Wakefield, observed that India's office market remained structurally strong. He remarked that the sector had entered a clear expansionary phase, with more than 80 per cent of the leasing during the quarter being new take-ups, highlighting that occupiers were increasing their footprint rather than just renewing space. He added that this trend was underpinned by the growth of global capability centres, the scaling of start-ups, and the resurgence of manufacturing and engineering.
Among city-specific performances, Bengaluru's net leasing fell 14 per cent to 3.46 million sq ft, while Mumbai's declined 19 per cent to 2.13 million sq ft. In contrast, Delhi-NCR more than doubled its absorption to 3.79 million sq ft, and Chennai recorded a multifold rise to 2.28 million sq ft. Pune saw a 64 per cent increase to 2.54 million sq ft, Hyderabad's demand grew 7 per cent to 1.42 million sq ft, Kolkata improved to 0.43 million sq ft, and Ahmedabad recorded a slight rise to 0.21 million sq ft.
Veera Babu, Executive Managing Director, Tenant Representation - India at Cushman & Wakefield, pointed out that net absorption figures reflected the real demand for space. He remarked that the widespread and sustained nature of leasing across cities such as Delhi-NCR, Pune, and Chennai set new benchmarks. He also noted that the active deal pipeline suggested this momentum was not a temporary spike but part of a deeper growth cycle in the sector.
The past quarter's surge in office leasing across most major Indian markets reflects the strength of the country's commercial property sector. With Delhi-NCR, Pune, and Chennai leading the demand, and long-term drivers such as global capability centres, start-ups, and manufacturing fuelling activity, the momentum indicates structural resilience. While Mumbai and Bengaluru experienced a decline, the overall trend points towards continued expansion and sustained occupier confidence in India's office sector.
Source - PTI
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