Office Space Leasing Jumps 35% Across 8 Major Cities In July-September: C&W

New Delhi: Net leasing of office spaces increased 35 per cent across eight major cities during the July-September period to 16.25 million sq ft on better demand from domestic and overseas companies, according to Cushman & Wakefield.

Real estate consultant Cushman & Wakefield (C&W) data showed that net leasing or absorption of office spaces rose in Delhi-NCR, Chennai, Hyderabad, Pune, Kolkata and Ahmedabad.

However, the net demand declined in the Mumbai and Bengaluru markets.

Net absorption is a key indicator of real estate demand, representing the net change in occupied office space.

"India's office sector continues to demonstrate structural strength. The market is now firmly in an expansionary cycle, with over 80 per cent of Q3 (July-September) leasing driven by fresh take-up - a clear sign of occupiers growing their footprint, not just renewing space," Anshul Jain, Chief Executive - India, SEA & APAC Office and Retail at Cushman & Wakefield, said.

This evolution is being powered by long-term fundamentals - from the rise of GCCs (Global Capability Centers) and the scaling of startups to the resurgence of manufacturing and engineering, he added.

Among cities, Bengaluru saw a 14 per cent decline in net leasing to 3.46 million sq ft during July-September compared to 4.01 million sq ft in the year-ago period.

Mumbai, too, witnessed a 19 per cent fall in net leasing of workspace to 2.13 million sq ft from 2.64 million sq ft.

However, the office demand in Delhi-NCR more than doubled to 3.79 million sq ft from 1.52 million sq ft.

In Chennai, the net leasing jumped multifold to 2.28 million sq ft from 0.47 million sq ft.

The net leasing of office space in Pune increased 64 per cent to 2.54 million sq ft from 1.55 million sq ft.

In Hyderabad, the net leasing of office space grew 7 per cent to 1.42 million sq ft from 1.32 million sq ft.

Kolkata saw net leasing rise to 0.43 million sq ft from 0.37 million sq ft.

Lastly, the net leasing of office space rose marginally to 0.21 million sq ft during July-September from 0.20 million sq ft in the year-ago period.

Veera Babu, Executive Managing Director, Tenant Representation - India at Cushman & Wakefield, said: "Net absorption is often seen as the real demand for space, and this quarter's numbers show that the momentum in India's office sector is both widespread and sustained." He noted that 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 is not a one-off spike but part of a deeper, more structural growth cycle," Babu said.

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