India to see nearly 4m sqm of new office space in 2025

Rents are expected to remain stable this year.

According to a Knight Frank report, prime office rents in India’s three largest occupier markets rose 3.1% year-on-year in Q4 2024 with those in Mumbai and Bengaluru registering strong increases.

Despite over 28 million sq ft delivering for the whole of 2024, the report said overall vacancies continued to tighten as leasing volumes scaled record highs in 2024, anchored by demand from domestic businesses as they continued to align business strategies with the growing Indian market.

“Global companies have also increased the scale of global capability centers’ (GCC) operations in the country as they aggressively scaled up the value chain. These sectors are expected to remain supportive of office demand in 2025. However, an estimated 3.9 million sqm of new office space completing in 2025 should keep the market in equilibrium with rents likely to remain stable as a consequence,” said Knight Frank.