Delhi-NCR office leasing more than doubles in Q1 to 2.62 mn sq ft: Vestian

The consultant attributed the rise in demand to increased activities in three southern cities (Bengaluru, Hyderabad and Chennai), whose share rose to 59 per cent from 46 per cent in Jan-March quarter

Office space leasing in Delhi-NCR more than doubled to 2.62 million square feet during April-June on better demand of workspace in Gurugram and Noida from corporates, according to Vestian.

On Friday, US-based real estate consultant Vestian released its report on India's top seven office markets that showed a 10 per cent rise in absorption or leasing of office space to 18.79 million sq ft during the second quarter of this calendar year.

The consultant attributed the rise in demand to increased activities in three southern cities (Bengaluru, Hyderabad and Chennai), whose share rose to 59 per cent from 46 per cent in January-March quarter.

As per the data, Bengaluru retained its dominant position with leasing of 5.62 million sq ft area in the latest June quarter, an increase of 32 per cent from the year-ago period.

In Hyderabad, the demand grew 5 per cent to 3.56 million sq ft, while Chennai saw a 4 per cent increase in leasing activities to 1.82 million sq ft.

In Delhi-NCR, the office space absorption surged 130 per cent to 2.62 million sq ft in the second quarter of 2025 calendar year. The share of the Noida market in the leasing activities was 27 per cent, while Gurugram contributed the rest.

The leasing of office space in Mumbai was 2 per cent higher at 3.45 million sq ft, led by Navi Mumbai with a 52 per cent share.

However, Pune witnessed a drop of 52 per cent to 1.37 million sq ft.

Kolkata, a small office market, saw a 52 per cent growth in leasing to 0.35 million sq ft during the April-June period.

On the demand trend, Shrinivas Rao, CEO of Vestian, said, "As more enterprises are transitioning back to in-office operations and several grade-A office projects are planned to be completed in the second half of 2025, the growth momentum is anticipated to continue with an increase in office utilisation ratio.

During the January-June period of 2025, the office space leasing in India's seven major cities stood at 36.75 million sq ft, an increase of 21 per cent from the corresponding period of the preceding year.

The consultant projected that absorption would surpass 75 million sq ft by the end of 2025.