Delhi-NCR Sees 15% Fall in New Office Supply Last Year, Mumbai Logs 37% drop

 Delhi-NCR and Mumbai property markets witnessed a decline in new supply of office spaces during the last year by 15% and 37% respectively, despite strong demand for prime workspaces from domestic and overseas firms, according to Colliers.

Real estate consultant Colliers India noted that the office demand has outstripped new supply in 2025 across India's seven major cities -- Bengaluru, Delhi-NCR, Mumbai, Hyderabad, Chennai, Pune and Kolkata. This has resulted in a lowering of vacancy levels.

Technology firms and the BFSI (Banking, Financial Services and Insurance) sector are major drivers of office demand in India. Foreign firms looking to establish Global Capability Centres (GCCs) in India are also helping create demand for prime workspace.

Colliers India's latest data showed that the new supply of office space in Delhi-NCR fell to 7.4 million sq ft last year from 8.7 million square feet in the 2024 calendar year.

Mumbai saw a steeper fall of 37% in new supply to 5.2 million square feet during 2025 from 8.3 million square feet in the preceding year.

In Hyderabad, the fresh supply fell 21% to 10.8 million sq ft from 13.7 million sq ft.

The new supply in Kolkata plunged 80% to 0.1 million sq ft from 0.5 million sq ft.

However, the fresh supply improved in Chennai, Bengaluru and Pune markets.

Bengaluru saw a 15% increase in fresh supply to 17.5 million sq ft from 15.2 million sq ft.

In Chennai, the new supply more than doubled to 4.5 million sq ft from 2.1 million sq ft.

Pune also witnessed a more than two-fold jump in the new supply of office spaces to 11 million sq ft during the last year from 5.3 million sq ft in the preceding year.

Overall, these top seven markets saw an increase of 5 per cent in the new office supply to 56.5 million sq ft during the last year from 53.8 million sq ft in the preceding year.

The office space leasing or absorption grew 6 per cent to 71.5 million sq ft last year across these seven cities from 67.2 million sq ft in 2024.

"With demand outpacing supply in recent times, overall vacancy levels fell by 49 basis points, while average rentals strengthened by up to 15% YoY (year-on-year) across major cities," Colliers India said.

Real estate companies like DLF Ltd, Prestige Estates, K Raheja Group, Embassy Group, Sattva Group and RMZ group are leading players in the office segment.

There are four office assets-backed real estate investment trusts (REITs) in India. These are Sattva Group and Blackstone backed Knowledge Realty Trust, K Raheja group backed Mindspace Business Parks REIT, Brookfield India Real Estate Trust and Embassy Office Parks REIT.

Recently, Bengaluru-based Bagmane Group sponsored Bagmane Prime Office REIT filed a draft paper with market regulator SEBI to launch its Initial Public Offering (IPO) to raise up to₹4,000 crore.

REITs are investment vehicles that own or operate income-generating real estate, enabling investors to earn a share of the income produced without directly purchasing the properties.