Hyderabad’s new office supply drops 51% even as other cities expand
13 Nov 2025 CW Team
Hyderabad witnessed a 51 per cent decline in new office space supply during the July–September 2025 quarter, even as India’s top six cities collectively recorded a 26 per cent annual rise, according to data from US-based real estate consultant Vestian.
The city added around 2 million sq ft of new office stock during the period, significantly lower than the year-ago level. Despite the muted supply, sustained demand from global capability centres (GCCs) and corporates kept nationwide absorption on an upward trajectory.
Supply Trends Across Major Cities
- Pune led all markets with 3.70 million sq ft, marking a 164 per cent year-on-year surge.
- Delhi-NCR saw new supply rise 35 per cent to 3.10 million sq ft.
- Chennai recorded an exceptional 320 per cent jump to 2.1 million sq ft.
- Mumbai doubled its supply to 1.80 million sq ft.
- Bengaluru, India’s largest office market, registered a 6 per cent decline to 3.40 million sq ft.
- Kolkata, the seventh city tracked by Vestian, saw no new supply in the quarter.
Absorption Remains Steady
Overall office leasing across the seven major cities rose 6 per cent, reaching 19.69 million sq ft in Q3 2025. Strong demand from occupiers continued to drive expansion plans across sectors, particularly IT/ITeS and GCCs.
Key Developers and REIT Activity
Leading developers active in the commercial segment include DLF Ltd, Tata Realty & Infrastructure, Hiranandani Group, Embassy Group, Prestige Estates, Sattva Group and RMZ Group.
India’s four listed REITs—Sattva-Blackstone backed Knowledge Realty Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India Real Estate Trust—continue to expand through a mix of greenfield and brownfield projects, supported by large rent-yielding portfolios.