Office space construction slowed down Jan-March: Vestian

Bengaluru: Pan-India office stock construction activities reached 9.5 million square feet (msf) in the January to March quarter (Q1) of 2025, down 39 per cent quarter-on-quarter (QoQ) and 12 per cent when compared to the same period last year, as per a report by workplace solutions firm Vestian on Thursday.

This slowdown can be attributed to the absence of new supply in Hyderabad and minimal supply additions in Chennai, Mumbai, and Kolkata during the period, as per the report.

In Hyderabad, a trend of new completions surpassing absorption for five consecutive years has also led to a significant rise in vacant office stock, which is currently at 28 msf and expected to rise further in 2025.

Conversely, Q1 witnessed sustained leasing activities across the top seven cities amid global macroeconomic uncertainty, dominated by Bengaluru with 4.08 msf. As a result, absorption rose by 34 per cent in the quarter compared to the same period a year earlier, reaching 17.96 msf.

The IT and IT services industry continued dominating in terms of absorption, bolstered by the rise of AI.