Delhi-NCR Office Leasing Sees 2.5x Rise in Q3 Due to Strong Corporate Demand

Delhi-NCR office leasing increased 2.5 times in Q3 due to strong corporate demand, with 3.79 million sq ft leased. Net absorption in the top 8 cities rose 35% YoY to 16.25 million sq ft. The market is on track to surpass last year's record, with 44.3 million sq ft of net absorption recorded in the first 9 months of 2025.

Delhi-NCR office leasing surged 2.5 times in Q3 2025, with 3.79 million sq ft leased, according to recent data from Cushman & Wakefield. This significant increase is a reflection of strong corporate demand and is part of a broader trend of growth in India's office real estate market. The top 8 cities reported a net absorption of 16.25 million sq ft, up 35% year-on-year Top 8 cities report 16.3 million sq ft of net office leasing during July-September^[1].

The market is on track to surpass last year's record, with 44.3 million sq ft of net absorption recorded in the first 9 months of 2025. This robust performance is driven by the rise of Global Capability Centres (GCCs) and the scaling of start-ups, as well as the resurgence of manufacturing and engineering sectors. Occupiers are making strategic, quality-driven decisions, and India is increasingly being seen as a core market for global operations Top 8 cities report 16.3 million sq ft of net office leasing during July-September^[1].

Delhi NCR and Bengaluru led the quarter, contributing 23% and 21% of total net absorption respectively. Mumbai, Chennai, and Pune also posted robust numbers, with all three cities surpassing their year-to-date (YTD) net absorption levels from the same period last year. Both Pune and Chennai recorded their highest-ever YTD net absorption, reflecting the growing maturity and attractiveness of these markets Top 8 cities report 16.3 million sq ft of net office leasing during July-September^[1].

Gross Leasing Volume (GLV) stood at 22.6 million sq ft in Q3, a marginal 2.6% decline year-on-year, bringing YTD leasing to 64.2 million sq ft — nearly two-thirds of the record 88 million sq ft transacted in 2024. Fresh leasing dominated the quarter, accounting for over 80% of total activity, indicating continued expansion despite global uncertainties Top 8 cities report 16.3 million sq ft of net office leasing during July-September^[1].

The strong absorption and controlled supply led to a 53 basis point decline in pan-India vacancy, now at 14.81%, marking nine consecutive quarters of vacancy reduction. Rental growth was observed across all major cities, supported by healthy demand and premium supply Top 8 cities report 16.3 million sq ft of net office leasing during July-September^[1].

The data suggests that the momentum in India's office sector is both widespread and sustained. Cities like Delhi NCR, Pune, and Chennai are setting new benchmarks in leasing and absorption. What's particularly encouraging is the volume of active deals currently in the pipeline, which suggests that this isn't a one-off spike but part of a deeper, more structural growth cycle Top 8 cities report 16.3 million sq ft of net office leasing during July-September^[1].