New Delhi, April 23
India’s office real estate market maintained its upward trajectory in Q1, driven by robust leasing and tight new supply, pushing overall vacancy down for the seventh consecutive quarter to 15.7 per cent — a cumulatively steep drop of 275 basis points (bps) from 18.45 per cent in Q2 2023, a report showed on Wednesday.
Supply constraints and strong occupier demand in the first quarter of the year across India’s top eight office markets have resulted in a drop-in vacancy rate by 55 basis points (bps) to 15.7 per cent from 16.25 per cent in Q4 2024, according to Cushman & Wakefield’s latest Q1 2025 Office Market Report.
The total new office completions in Q1 2025 stood at 10.7 million square feet (MSF).
Bengaluru (3.28 MSF), Pune (3.21 MSF), and Delhi-NCR (2.71 MSF) contributed a combined 86 per cent (9.2 MSF) of this new supply.
Hyderabad saw a supply of 1.32 MSF, while Mumbai registered supply of 0.18 MSF. Cities like Chennai, Kolkata and Ahmedabad recorded no new supply, resulting in lower vacancy rates and higher rentals in these markets.
Meanwhile, office leasing activity remained strong in the first quarter with gross leasing volume (GLV) across the top 8 markets reaching 20.3 MSF, a 5 per cent annual increase and in line with the two-year average of 20 MSF per quarter, said the report.