India’s office real estate market continued to show strong momentum in the first half of 2025, with demand touching 34.5 million sft, according to the latest report released jointly by the Confederation of Real Estate Developers’ Associations of India (CREDAI) and real estate intelligence platform CRE Matrix.

The report noted that vacancy levels declined by 210 basis points year-on-year, supported by a favourable demand-to-supply ratio of 1.3X across the last six quarters. Pan-India weighted average rentals rose to Rs90.7 per sq. ft. per month in Q2 2025, marking a 4.7 per cent quarter-on-quarter growth, further reinforcing India’s status as a landlord’s market.

IT/ITeS remained the largest demand driver with 24 per cent share, followed by BFSI (20 per cent) and co-working operators (19 per cent). Hyderabad emerged as the top destination for co-working, contributing 29 per cent to national demand in Q2. The city is also poised to surpass the Mumbai Metropolitan Region (MMR) in total office stock by next quarter.

Bengaluru and Pune accounted for nearly 40 per cent of aggregate demand, while Pune alone contributed almost 30 per cent of new supply during H1 2025.