Hyderabad’s new office supply drops 51% even as other cities expand
Real Estate

Hyderabad’s new office supply drops 51% even as other cities expand

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.

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 CitiesPune 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 SteadyOverall 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 ActivityLeading 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.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code