Leasing of office spaces fell 6 per cent across top eight cities during September quarter on lower demand amid global uncertainties, Knight Frank said on Tuesday, but asserted that the full calendar year will see a record absorption of workspaces.
In its report released through a webinar, real estate consultant Knight Frank India mentioned that the gross leasing of office spaces stood at 17.8 million square feet in the eight major cities during July-September, a decline of 6 per cent from the year-ago period.
Leasing by foreign firms to set up Global Capability Centers (GCCs) fell 20 per cent to 5.7 million sq ft from 7.1 million sq ft, dragging the absorption number in the latest September quarter, the consultant data showed.
Nevertheless, the total gross leasing during January–September grew 24 per cent annually to 66.7 million sq ft.
"We expect the gross leasing of office space to be record this year at around 85 million sq ft despite many global headwinds," said Viral Desai, Senior Executive Director, Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets and Retail Agency, Knight Frank India.
However, he said the leasing activities trend in the first three quarters of 2025 calendar year do indicate sluggishness in the market.
Desai pointed out that the gross leasing, which stood at 28.2 million square feet during January-March period of 2025, declined to 20.7 million square feet in April-June and 17.8 million square feet in the latest September quarter.
City-wise data showed that the leasing of office spaces in Bengaluru fell 21 per cent to 4.2 million square feet during July-September period. The leasing grew in the IT city 63 per cent to 22.5 million sq ft.
In Hyderabad, the leasing grew 33 per cent to 2.9 million sq ft in the September quarter, while the absorption rose 21 per cent to 8.8 million sq ft in the first nine months of 2025.
The office leasing in Chennai rose 9 per cent in July-September to 2.8 million sq ft while the absorption of workspaces surged 41 per cent to 7.9 million sq ft in January-September period.
In Delhi-NCR, the office leasing dropped 15 per cent to 2.7 million sq ft in the latest September quarter, but absorption grew 12 per cent to 9.9 million sq ft in the January-September period.
Pune saw a decline of 9 per cent in September quarter to 2.3 million sq ft, but demand rose 7 per cent to 7.4 million sq ft in the first nine months of this year.
The office leasing in Mumbai fell 27 per cent to 1.9 million sq ft during the latest September quarter. The financial capital saw a 12 per cent decline in January-September to 7.4 million sq ft.
In Kolkata, the leasing jumped 190 per cent to 0.5 million sq ft during July-September. The city saw a 87 per cent growth in January-September to 1.6 million square feet.
Lastly, the leasing of office space in Ahmedabad rose 13 per cent in September quarter to 0.4 million sq ft. The city witnessed a fall of 41 per cent in January-September to 1.2 million sq ft.
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