The Confederation of Real Estate Developers’ Associations of India (CREDAI), in collaboration with CRE Matrix, has released its India Office Market Report for Q2 CY’25. The findings highlight sustained momentum in India’s commercial real estate sector, with demand of 34.5 million sq. ft recorded in H1 2025 and vacancy rates compressing by 210 basis points year-on-year.
Key Market Trends
Strong Absorption and Resilient Demand
- 17.3 million sq. ft of office space absorbed in Q2 2025 alone.
- Demand-to-supply ratio held steady at 1.3X over the last six quarters, reflecting occupier confidence.
- Pan-India rentals rose to ₹90.7/sq. ft/month, marking a 4.7% annualized growth.
Sector-Wise Occupier Mix
- IT/ITeS: 24%
- BFSI: 20%
- Co-working: 19% (Hyderabad leading with 29% share in Q2 2025).
City-Level Highlights
- Hyderabad: Emerging as India’s co-working capital; set to surpass MMR in total office stock by Q3 2025.
- Pune & Bengaluru: Accounted for 40% of aggregate demand in Q2 2025.
- Delhi-NCR: 4.9M sq. ft demand in H1 2025 (+23% QoQ); strong uptake in BFSI, healthcare & professional services.
- Ahmedabad: Moderate activity with 0.5M sq. ft demand, but GIFT City is strengthening long-term prospects as a BFSI & IT hub.
Supply Dynamics
- 28.8 million sq. ft of new office stock added in H1 2025.
- Pune: Led supply growth, contributing 30% of new additions.
- Pune + Hyderabad: Together accounted for 54% of supply in Q2 2025.
- Tier-2 cities are gaining traction with upcoming 9.7M sq. ft pipeline in Ahmedabad by 2030.
Leadership Insights
Shekhar Patel, President, CREDAI:
“India’s office market is maturing beyond metros. Emerging cities are becoming integral to the ecosystem, laying the foundation of a future-ready office market that will power India’s journey to a $30 trillion economy.”
Abhishek Kiran Gupta, CEO & Co-Founder, CRE Matrix:
“India has firmly become a landlord’s market. With rentals climbing nearly 5% in one quarter, strong GCC expansion, and co-working growth, the sector shows structural depth and resilience.”
Outlook
The report signals a robust remainder of 2025, supported by:
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- Healthy pre-commitment leasing,
- Sustained demand from occupiers,
- Strong pipeline of Grade A supply in Tier-1 and emerging hubs.
India’s office market is demonstrating the ability to absorb significant supply while maintaining rental growth and reducing vacancies — reinforcing its strength in the global business landscape.
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