Office Market

Consultants attribute premium rentals in key micro-markets to limited quality Grade A space and sustained occupier demand, even as rents vary significantly across locations

Gurugram added 21 million sq ft of office space and recorded 40 million sq ft of leasing since 2021, while CBRE expects total stock to reach up to 125 million sq ft by 2030

Office leasing fell 3.9 per cent in H1 2026 amid geopolitical uncertainty and AI-led business changes, while net absorption reached a record high, according to JLL

Rising GCC and MNC demand, coupled with a shortage of premium Grade A+ offices, is driving built-to-suit projects and forward leasing across India's top markets

Crisil Ratings says healthy leasing growth and steady demand-supply dynamics may reduce vacancy levels, though AI-led disruptions and geopolitical risks remain concerns

360 ONE Asset has acquired a 13 per cent stake in Brookfield's Ecoworld office campus in Bengaluru for Rs 1,125 crore, marking a private entry into a yield-generating asset

Tech firms and AI-first startups expand leasing across Bengaluru, Hyderabad, Pune and Chennai

Noida's office market has seen an 18 per cent increase in rentals during the last six years, with the city gradually emerging as an important location for corporates to set up their bases, according to Cushman & Wakefield. Prime locations at Noida in Uttar Pradesh, however, saw an increase of 29 per cent in office rentals. Real estate consultant Cushman & Wakefield has released a report, 'Noida-Runway for Growth, ' that captures the city's rapid transformation into a premier economic and real estate destination. As per the report, Noida has a total office stock of 43.4 million square feet, including 26.6 million sq ft of Grade A+ (top quality) assets as of September 2025. "Noida's office rental market from 2019 to 2025 showcases broad-based growth, driven by strong demand, major infrastructure upgrades and the city's emergence as a favoured corporate destination," the report said. The average office rentals currently stand at Rs 70-72 per sq ft a month, an increase of 18.3 per

The need for GCCs and India-facing businesses in India has increased dramatically. These two factors have contributed to the office demand, said Baijal, Knight Frank India, chairperson

Cushman & Wakefield report states robust leasing, low supply in most markets helped to bring drop in vacancy rates

The report underscored the challenges facing India's office market in 2024, attributing them to global macroeconomic uncertainty, escalating geopolitical tensions, and persistent inflation

Office rents in Delhi-NCR clock the highest increase, rising by 8.3% in 2024 compared to 2019

Real estate management firm JLL reports that the combined share of southern cities in India's annual net absorption has remained between 54-56 per cent during 2022 and 2023

7 Indian cities clock 21% growth in office leasing; 26% increase in new supply

Inflows into office sector up 41% YoY to $900 mn. Key institutional investors signing strategic deals to boost their presence, expand their office portfolio in India

Rentals may not, however, appreciate in the near term due to considerable supply in a muted demand environment

According to industry reports, southern cities, especially Bengaluru, Chennai and Hyderabad, are emerging as leading hubs in office space leasing owing to robust demand from tech and flex players

Embassy Office Parks REIT will invest around Rs 2,200 crore in the next four years to develop premium workspaces as it sees tremendous growth potential in office market despite global recessionary concerns, its CEO Vikaash Khdloya said. In an interview with PTI, he said the office demand in India would remain strong as large global companies want to open offices in India because of the huge availability of a cost-efficient talent pool and cheap rentals for premium workspaces. This trend would only strengthen amid global recessionary fears, which will lead to increased outsourcing of work to India, Khdloya said. Bengaluru, which is its core market with a significant presence, is leading the resurgence of India's office market that suffered a setback during the COVID pandemic, he added. Embassy Office Parks REIT is India's first Real Estate Investment Trust (REIT) sponsored by global investment firm Blackstone and Bengaluru-based realty firm Embassy group. It has a completed portfoli

Study says in Jan-Sept 2021, office markets had incremental activity of 13% by volume and 6% growth in new office completion over same period last year

The consultant noted that the main southern office market has overtaken other regions in terms of new supply, net absorption, and even rental growth