The Connect Q1 2025
Key Insights
17.96 Mn sq ft of absorption
IT-ITeS sector dominated absorption with 34% share
9.50 Mn sq ft of new completions
Key Takeaways
- Despite global macroeconomic uncertainty, the first quarter of 2025 witnessed sustained leasing activities across the top seven cities of India. As a result, absorption rose by 34% in Q1 2025 compared to the same period a year earlier, reaching 17.96 Mn sq ft. However, it was down by 17% from the highest ever absorption recorded in the previous quarter.
- While the share of southern cities (Bengaluru, Chennai, and Hyderabad) reduced significantly from 61% in Q1 2024 to 46% in Q1 2025, western cities (Mumbai and Pune) witnessed a jump from 24% to 37% in absorption during the same period.
- Construction activities slowed down in Q1 2025, reaching 9.50 Mn sq ft. It declined by 39% on quarter and 12% over the previous year. This could be attributed to the absence of new supply in Hyderabad and minimal supply additions in Chennai, Mumbai, and Kolkata during Q1 2025.
