Office Leasing Falls 20 Per Cent Across Eight Major Cities
Real Estate

Office Leasing Falls 20 Per Cent Across Eight Major Cities

Net office leasing across eight major Indian cities fell 20 per cent year on year to 36.7 mn sq ft in January-September, compared with 46 mn sq ft in the year-ago period, as limited additions of quality workspace and a high base restrained absorption, according to Cushman & Wakefield. Net absorption measures the change in occupied office space in a market over a specified period.

The real estate consultant said net leasing declined in Mumbai, Delhi-NCR, Pune, Chennai and Kolkata, while Bengaluru, Hyderabad and Ahmedabad recorded growth. Gross leasing, which includes fresh absorption, open-market renewals and pre-leasing, rose 1 per cent to a record 64.6 mn sq ft. The figure represented the highest gross leasing for the first nine months of a year and indicated sustained overall market activity.

Anshul Jain, chief executive for India, Southeast Asia, Middle East and Africa, and Asia-Pacific office and retail at Cushman & Wakefield, said the office market remained structurally strong despite macroeconomic and geopolitical uncertainty. He attributed demand to global capability centres (GCCs), noting that India's large talent pool and cost competitiveness continued to attract global companies establishing such centres.

Veera Babu, executive managing director for tenant representation in India at Cushman & Wakefield, said net absorption reached 14.1 mn sq ft in Q3 and 36.7 mn sq ft in the first nine months. He linked the moderation to a strong 2025 base and limited supply additions in H1, which reduced occupier options. Completions increased significantly in Q3, adding capacity for expansion, while pre-commitments and interest in locations beyond established hubs gained traction.

Mumbai's net leasing fell 46 per cent to 4.1 mn sq ft, while Delhi-NCR declined 48 per cent to 5 mn sq ft. Chennai and Pune recorded decreases of 48 per cent and 39 per cent to 2.8 mn sq ft and 4.2 mn sq ft, respectively. Kolkata fell 12 per cent to 1.1 mn sq ft. Bengaluru rose 16 per cent to 11 mn sq ft, Hyderabad increased 41 per cent to 7.3 mn sq ft and Ahmedabad surged 81 per cent to 1.2 mn sq ft.

Net office leasing across eight major Indian cities fell 20 per cent year on year to 36.7 mn sq ft in January-September, compared with 46 mn sq ft in the year-ago period, as limited additions of quality workspace and a high base restrained absorption, according to Cushman & Wakefield. Net absorption measures the change in occupied office space in a market over a specified period. The real estate consultant said net leasing declined in Mumbai, Delhi-NCR, Pune, Chennai and Kolkata, while Bengaluru, Hyderabad and Ahmedabad recorded growth. Gross leasing, which includes fresh absorption, open-market renewals and pre-leasing, rose 1 per cent to a record 64.6 mn sq ft. The figure represented the highest gross leasing for the first nine months of a year and indicated sustained overall market activity. Anshul Jain, chief executive for India, Southeast Asia, Middle East and Africa, and Asia-Pacific office and retail at Cushman & Wakefield, said the office market remained structurally strong despite macroeconomic and geopolitical uncertainty. He attributed demand to global capability centres (GCCs), noting that India's large talent pool and cost competitiveness continued to attract global companies establishing such centres. Veera Babu, executive managing director for tenant representation in India at Cushman & Wakefield, said net absorption reached 14.1 mn sq ft in Q3 and 36.7 mn sq ft in the first nine months. He linked the moderation to a strong 2025 base and limited supply additions in H1, which reduced occupier options. Completions increased significantly in Q3, adding capacity for expansion, while pre-commitments and interest in locations beyond established hubs gained traction. Mumbai's net leasing fell 46 per cent to 4.1 mn sq ft, while Delhi-NCR declined 48 per cent to 5 mn sq ft. Chennai and Pune recorded decreases of 48 per cent and 39 per cent to 2.8 mn sq ft and 4.2 mn sq ft, respectively. Kolkata fell 12 per cent to 1.1 mn sq ft. Bengaluru rose 16 per cent to 11 mn sq ft, Hyderabad increased 41 per cent to 7.3 mn sq ft and Ahmedabad surged 81 per cent to 1.2 mn sq ft.

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