- KR Bharat
- 2025-12-24
Hyderabad has recorded the highest office space vacancy rate among India’s top seven cities, even as net office absorption rises 10% year-on-year, according to the latest Anarock Research data released on Wednesday.
The report highlights that despite challenges like IT layoffs and global tariff tensions, the Indian office market remains robust, with absorption across the top seven cities reaching an all-time high in 2025.
New Office Supply Trends:
Bengaluru leads in new office completions with an 8% annual increase, reaffirming its position as the country’s top city for commercial real estate development.
Hyderabad and the Mumbai Metropolitan Region (MMR) are the only cities to witness a decline in new office supply—Hyderabad saw a drop of 39% (from 12.88 million sq ft in 2024 to 9 million sq ft in 2025), while MMR recorded a 35% decline.
Pune experienced a 103% surge in new office supply, from 5.23 million sq ft in 2024 to over 10.60 million sq ft in 2025. Chennai’s new supply rose 72% year-on-year, and NCR saw a 46% increase.
Impact on Vacancy Rates:
Hyderabad’s office vacancy marginally decreased from 26.5% in 2024 to 26.3% in 2025, while MMR’s vacancy dropped from 15.5% to 14.7%.
The reduction in new supply in Hyderabad and MMR has helped ease some vacancy pressure, even as other cities like Pune and Chennai face rising absorption demands.
Peush Jain, MD, Commercial Leasing & Advisory at ANAROCK Group, commented:
“India’s office real estate market veritably boomed in 2025, with net absorption and new completions both surging thanks to the country’s robust economic growth.”
Despite Hyderabad topping the vacancy charts, the city remains a key commercial hub, with demand expected to remain steady amid selective supply additions and growing corporate leasing activity.
