India’s office market sees robust demand of 34.5 mn sq ft in H1 CY25; vacancy dips on strong absorption

The report says Ahmedabad, while witnessing a moderation in activity, remains on a steady growth path, as the city witnessed 0.5 million sq ft demand in H1 CY’25, with activity moderating compared to the previous year. Shekhar Patel, President of CREDAI, said, “India’s office market is entering a new era of maturity and expansion. What’s most striking is that growth is no longer confined to traditional metros as emerging cities are steadily becoming integral to the country’s office landscape.”

Strong domestic occupier activity, ongoing GCC expansion, and the rapid rise of co-working—particularly in Hyderabad—have sustained robust absorption levels, feels Abhishek Kiran Gupta, CEO & Co-Founder of CRE Matrix. “With the demand-to-supply ratio holding steady at 1.2X and pan-India rentals climbing to ₹90 per sq. ft per month—up nearly 5% in just one quarter—India has firmly cemented its position as a landlord’s market.”

Despite significant new supply additions, the demand-to-supply balance also remained favourable, resulting in further compression of vacancy levels across prime hubs. The report says the pan-India weighted average rentals climbed to ₹90.7 per square ft per month, reflecting healthy annualised growth of 4.7% in Q2 CY’25 compared to Q1 CY’25.

In its outlook for the remainder of 2025, the report says there’s a strong pipeline of quality supply scheduled across Tier-1 cities. Healthy levels of pre-commitment leasing, combined with compressed vacancy rates, are expected to provide stability and ensure sustained market momentum.

CREDAI, the apex body of private real estate developers in India, represents 13,000+ developers across 230 city chapters in 20 states, while CRE Matrix is a leading real estate data analytics platform, which decodes transaction records across office, retail, warehousing, industrial, and residential assets.