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At the same time, Pune emerged as the biggest gainer of the year, with net office absorption almost doubling to 6.2 million sq ft, reflecting strong demand from technology firms, BFSI occupiers and coworking operators expanding in the city’s new business corridors.
In contrast, Kolkata was the only major city to record a decline in office leasing, with absorption falling 19% year-on-year, underscoring the uneven recovery across India’s top seven office markets.
What is working for Bengaluru?
Despite persistent congestion and infrastructure constraints, Bengaluru remains the top choice for occupiers led by IT/ITeS, Global Competence Centers (GCC) and co-working players. IT/ITeS firms alone accounted for 27% of the total office space absorption across India, a large portion of which was concentrated in the city’s Outer Ring Road and Whitefield micro-markets.
Bengaluru also saw rental growth of 9%, the highest among major metros, while its vacancy rate fell from 13% to 12.2%, indicating that space additions continue to be rapidly absorbed.
Pune: Fastest growing market
Pune emerged as the fastest growing office market among the seven cities, registering a 97% year-on-year jump in net absorption and 168% growth in new completions. The city’s balanced occupier mix, ranging from IT/ITeS and engineering firms to BFSI and startups, has made it one of the most dynamic real estate hubs post-pandemic.
Lower rents compared to Mumbai and Bengaluru, improved connectivity and a growing base of multinational occupiers have helped Pune transform from a satellite city into a prime commercial destination.
Why is Kolkata struggling?
Kolkata’s commercial real estate remained weak, with net office absorption falling to 0.85 million sq ft in the nine months to 2025 from 1.05 million sq ft last year.
Limited Grade-A supply, slow infrastructure development, and lack of large multinational occupiers are weighing on the city’s growth prospects. The vacancy rate remains high at 17.8%, down slightly from 18.3% in 2024, indicating sluggish demand.
Here’s a look at city-wise office absorption and vacancy (9M 2025)
| City | Net Absorption (million square feet) | change from year to year | Vacancy (%) 2025 | Vacancy (%) 2024 |
|---|---|---|---|---|
| Bengaluru | 9.95 | +22% | 12.2 | 13.0 |
| Delhi-NCR | 8.20 | +24% | 22.0 | 23.3 |
| MMR (Mumbai) | 6.60 | +31% | 14.9 | 14.8 |
| Hyderabad | 5.70 | +29% | 26.5 | 26.6 |
| Pune | 6.20 | +97% | 11.9 | 11.5 |
| Chennai | 4.50 | +56% | 8.9 | 9.4 |
| Kolkata | 0.85 | -19% | 17.8 | 18.3 |
| Total (Top 7 Cities) | 42.00 | +34% | 16.2 | 16.7 |
Source: ANAROCK Research & Advisory (9M 2025 vs 9M 2024)
Pan-India snapshot
Across India’s top seven office markets, rents rose 6% year-on-year to ₹90 per sq ft, while total vacancy declined slightly to 16.2%. Net office absorption reached a six-year high of 42 million sq ft driven by technology, flexible workspaces and continued expansion in BFSI.
Despite healthy leasing activity, Hyderabad continued to report the highest vacancy rate at 26.5%, highlighting supply-side pressure in some micro-markets. In contrast, Chennai recorded single-digit office vacancy at 8.9%, the lowest among the top seven metros, reflecting a tight, well-balanced office market with strong demand-supply alignment.
Overall, Bengaluru, NCR and MMR accounted for about 60% of the total leasing, while Pune and Chennai saw the fastest growth rates.