The supply of new office space in India’s major cities dipped slightly in the first quarter of 2025 despite rising demand, according to a report by Colliers India. New office space additions fell 1% year-over-year to 99 lakh sq ft across seven key cities, marking a marginal decline from 100 lakh sq ft recorded in the same period last year.

Bengaluru, India’s top office space market, witnessed a 16% drop in new supply, falling to 37 lakh sq ft from 44 lakh sq ft. Hyderabad faced the sharpest decline, plummeting 88% to just 3 lakh sq ft from 26 lakh sq ft. Other major cities also saw significant reductions: Mumbai’s new supply fell 60% to 4 lakh sq ft, Kolkata recorded a 50% drop to 1 lakh sq ft, and Chennai saw a 33% decline to 2 lakh sq ft.

Conversely, a few cities bucked the trend. Delhi-NCR recorded a more than fivefold increase in new supply, jumping from 5 lakh sq ft to 27 lakh sq ft. Pune also saw robust growth, with office space supply surging 2.5 times to 25 lakh sq ft from 10 lakh sq ft in the previous year.

Despite the overall drop in new supply, demand for office space remains strong. Colliers reported a 15% increase in gross leasing activity, reaching 159 lakh sq ft in Q1 2025, compared to 138 lakh sq ft in the same period last year.

The contrasting trends of limited new supply and rising leasing activity indicate a tightening market, potentially leading to increased rental rates and competition for available spaces. As businesses continue to expand, the dynamics of India’s office space sector will be one to watch in the coming months.