Hyderabad tops office vacancy rate among India’s leading cities
Hyderabad leads India’s top seven cities in office vacancy rate, even as net absorption rises 10% year-on-year. Bengaluru leads new completions, while Pune, Chennai, and NCR see strong supply growth. Hyderabad and MMR witness slight declines in new office supply.
Hyderabad: Hyderabad has the highest office space vacancy rate among the top seven cities of the country.
Latest Anarock Research data released on Wednesday documented that despite notable headwinds including IT layoffs and tariff tensions, the Indian office market in India’s top seven cities is on a roll. The data reveals that net office absorption in these cities is at an all-time high with a 10% yearly rise against 2024.
New Office Supply:
In terms of new office completions, the top seven cities recorded an 8 per cent yearly increase, with Bengaluru again beating all other top cities.
According to Anarock report, Mumbai Metropolitan Region (MMR) and Hyderabad were the only cities to see a drop in new supply addition in 2025, by 35% and 39%, respectively. While MMR added approximately 6.05 million sft office space in 2025 against 9.27 million sft in 2024, Hyderabad saw approx 9 million sft of new supply in 2025, against 12.88 million sft in 2024.
With reduced new office supply in MMR and Hyderabad in 2025, office vacancies dropped in both cities – from 15.50% in 2024 to 14.70% in 2025 in MMR, and from 26.50% to 26.30% in Hyderabad.
Pune recorded a massive 103% yearly jump in new office supply – from 5.23 million sft in 2024 to over 10.60 million sft in 2025. In Chennai, new office supply rose 72% y-o-y – from 2.27 million sft in 2024 to 3.90 million sft in 2025, while NCR witnessed a 46% rise – from 5.93 million sft in 2024 to 8.65 million sft in 2025.
Peush Jain, MD, Commercial Leasing & Advisory, ANAROCK Group, said, “India’s office real estate market veritably boomed in 2025, with net absorption and new completions both surging thanks to the country’s robust economic growth.”
