Market Report
The Connect Q3 2025
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Key Insights
1
7 Mn sq ft of absorption, the second-highest absorption level ever recorded
2
1 Mn sq ft of new completions, rising by 26% over the previous year
3
Vacancy declines by 60 basis points to 11.6%
Key Takeaways
- The robust growth in GDP, controlled inflation, stable monetary policy, strong employment outlook, and high inflow of FDI & investments strengthened India’s real estate sector. Pan-India office absorption rose by 6% year-on-year and 5% compared to the previous quarter amid global macroeconomic uncertainties and geopolitical frictions, reaching 19.69 Mn sq ft. This was the second-highest absorption level ever recorded, following the historic peak of 21.62 Mn sq ft in Q4 2024.
- IT-ITeS sector accounted for 31% of the total absorption reported in Q3 2025, registering a sharp decline from nearly 50% in Q2 2025. Meanwhile, BFSI sector’s share more than doubled to 15% from 6% during the same period, underscoring growing occupier interest from financial institutions. The share of Flexible Spaces remained stable at 14% compared to the previous quarter.
- As absorption increased, construction activities also rose in Q3 2025 with new completions rising to 16.1 Mn sq ft, registering 10% quarterly and 26% yearly surge. The rise in supply was largely driven by significant project completions in Pune, Bengaluru, and NCR, which together contributed 63% of the total new completions across the top seven cities.
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