Office Space Supply Drops Amid Rising Demand in Major Indian Cities

The new supply of office space across seven major Indian cities declined 1% to 99 lakh sq ft from January to March, according to Colliers India. Despite this, gross leasing increased by 15% to 159 lakh sq ft. Notable changes included a sharp decline in cities like Hyderabad and a rise in Delhi-NCR.

New data from Colliers India reveals a 1% drop in the supply of office space across seven major cities, totaling 99 lakh sq ft during the January-March period. This decline occurred even as the demand for office space remained high.

Compared to the previous year, notable changes were observed in several cities. Bengaluru experienced a 16% decrease in new supply to 37 lakh sq ft, while Chennai saw a decline of 33% to 2 lakh sq ft. Conversely, Delhi-NCR's new office space supply soared over five times to 27 lakh sq ft.

In contrast, Hyderabad's new supply plummeted by 88% to 3 lakh sq ft. Other cities like Kolkata and Mumbai also saw significant reductions, with supply dipping 50% and 60% respectively. Pune, on the other hand, experienced a 2.5 times increase to 25 lakh sq ft. Throughout the initial quarter of 2025, gross leasing increased by 15% across these cities to 159 lakh sq ft.

(With inputs from agencies.)