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5d ago

India’s Office and Industrial Real Estate Markets Show Resilience in Q1 2025

Office completions slowed but leasing remained strong, while industrial and warehousing demand surged with record supply growth.

The total new office completions in the first quarter of 2025 stood at 10.7 million sq ft (msf), down by 13% YoY and 27% QoQ, falling short of expectations due to delays in occupancy certifications and project timelines, according to a report by Cushman and Wakefield. (Picture for representational purposes only)

Overview

  • New office completions in Q1 2025 totaled 10.7 million square feet, a 13% year-on-year drop, due to project delays and certification challenges.
  • Office market vacancy declined for the seventh consecutive quarter to 15.7%, driven by constrained supply and robust occupier demand.
  • Gross office leasing increased 5% year-on-year to 20.3 million square feet, with fresh leasing accounting for nearly 80% of activity.
  • Industrial and warehousing demand rose 15% year-on-year to 9 million square feet, led by Delhi-NCR and Chennai, which together accounted for 57% of leasing.
  • New supply of Grade A industrial and warehousing space grew 16% year-on-year to 9.4 million square feet, driven by strong demand from engineering and e-commerce sectors.