India’s office real estate market maintained robust growth in Q2 2025, with total absorption reaching 18.79 million square feet, up 10% year-over-year and 5% quarter-over-quarter, according to Vestian Research. The IT-ITeS sector dominated, absorbing 9.4 million square feet, or 50% of the total, driven by demand in Bengaluru’s Yeshwantpur, Hyderabad’s Nanakramaguda, and Mumbai’s Airoli.
The sector’s absorption surged 44% from Q1 2025’s 6.5 million square feet, reinforcing its pivotal role in India’s commercial real estate boom.Flex spaces also gained traction, capturing a 14% share of absorption, up from 9% in Q1 2025. Absorption in this segment soared 68% quarter-over-quarter to 2.63 million square feet, with southern cities—Bengaluru, Chennai, and Hyderabad—accounting for nearly 80% of flex space uptake.
This reflects the growing appeal of flexible workspaces amid evolving workplace dynamics.The top seven cities recorded 36.75 million square feet of absorption in H1 2025, a 21% increase from H1 2024. Vestian projects full-year absorption could exceed 75 million square feet, potentially marking a record high. Southern cities led the charge, contributing 59% of Q2 absorption, up from 46% in Q1, fueled by strong economic activity and infrastructure development.Bengaluru emerged as a standout, with absorption rebounding 38% quarter-over-quarter to 5.62 million square feet, a 32% annual increase.
Hyderabad followed, absorbing 3.56 million square feet, up 34% from Q1, while Chennai saw a 13% quarterly rise to 1.82 million square feet. Mumbai’s absorption dipped 14% from Q1 to 3.45 million square feet, though it grew 2% year-over-year. Kolkata posted a two-year high of 0.35 million square feet, up 52% annually, while Pune saw a sharp 49% quarterly decline to 1.37 million square feet. NCR’s absorption fell 4% from Q1 but soared 130% year-over-year to 2.62 million square feet.New completions totaled 14.7 million square feet in Q2, up 19% annually, with Pune leading at 4.3 million square feet.
“India’s office market continues to thrive, driven by major hubs like Bengaluru and Hyderabad,” said Shrinivas Rao, CEO of Vestian. “With enterprises returning to in-office operations and new grade-A projects slated for completion, we expect sustained growth.” Despite global uncertainties, India’s office market remains a bright spot, poised for a landmark year.
