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Indian commercial office market hits record high, signals major shift in 2025
MUMBAI: India’s commercial office market has reached new heights, with leasing volumes hitting a record 66.4 million square feet in 2024, a 14 per cent year-on-year growth, according to the Ficci-Colliers report: India Office | Setting New Standards for 2025. The market is projected to grow further to 65-70 million square feet in 2025, marking a significant transition from a supply-led to an occupier-driven landscape.
Bengaluru led the charge with its highest-ever absorption of 21.7 million square feet, while Hyderabad recorded the strongest growth at 55 per cent. The dominance of the technology sector has declined from 40-50 per cent to 25 per cent , with engineering, manufacturing, financial services, and flexible workspaces now accounting for more than half of Grade A office demand.
Global capability centres (GCCs) have emerged as a key driver, leasing 25.7 million square feet in 2024, a 41 per cent increase year-on-year. Bengaluru captured 47 per cent of GCC leasing, while Mumbai saw a fourfold rise in uptake.
“Office leasing is expected to grow another 8-10 per cent in FY26, fuelled by demand from GCCs and the financial services sector,” said Ficci committee on urban development and real estate chairman & RMZ chairman Raj Menda.
Sustainability is also shaping occupier preferences, with over 70 per cent of leasing now in green-certified buildings, a figure expected to rise to 80-85 per cent by 2025. Menda added: “Nearly 80 per cent of new supply over the next two to three years will be green certified. By embracing sustainability and innovation, we can contribute to economic growth, enhance well-being, and leave a lasting impact on the environment.”
The real estate investment trust (Reit) landscape is expanding, with 80 million square feet currently under Reits and an additional 400 million square feet identified as potential Reit stock. The listing of India’s first small and medium Reit (SM-Reit) in 2024 has opened new avenues for retail investors.
Looking ahead, new office supply is expected to reach 60-65 million square feet in 2025, with vacancy levels projected to decline to 15-16 per cent. Average rental values are forecast to touch Rs 100-110 per square foot per month.
Ficci committee co-chairman and managing director and CEO Godrej Properties Gaurav Pandey highlighted the residential sector’s milestone in 2024, with demand hitting 1 billion square feet, valued at Rs 8.5 lakh crore, primarily concentrated in India’s top five cities.
“The sector needs execution build-up and brilliant talent across both white-collar and blue-collar jobs,” Pandey added, stressing the importance of labour strategy and talent management for sustained growth.
On the investment front, institutional inflows reached USD 4.7 billion in the first nine months of 2024, with over 60 per cent directed towards industrial, warehousing, and residential assets. The government’s Rs 1 lakh crore urban challenge fund aims to transform cities into growth hubs and improve infrastructure.
However, affordability concerns persist in the residential segment said Ficci committee co-chairman and managing director and CEO HDFC Capital Advisors Vipul Roongta: “With the average unit price at Rs 1 crore in major cities, home ownership remains out of reach for the emerging middle class, who can typically afford homes in the Rs 50-75 lakh range.”
Meanwhile, DLF vice chairman and managing director, rental business, Sriram Khattar, noted a shift in commercial real estate priorities: “Gone are the days when offices were built at 70-80 square feet per desk and simply filled up. The emphasis now is on quality workspaces that enhance occupier and employee experience.”
Looking ahead, Colliers India managing director office services Arpit Mehrotra stated: “The occupier-driven Indian office market will continue to diversify in 2025, and developers will need to remain agile to meet evolving preferences.”
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Sapphire Foods FY26 revenue rises to Rs 3,125 crore, posts loss
Q4 revenue at Rs 792 crore, FY26 loss at Rs 32 crore amid cost pressures.
MUMBAI: If growth is on the menu, profitability seems to have taken a brief detour. Sapphire Foods India reported a steady rise in topline for FY26, even as rising costs weighed on profitability. Revenue from operations grew to Rs 3,125 crore for the year ended March 31, 2026, up from Rs 2,882 crore in FY25. However, the company swung to a loss, reporting a net loss of Rs 32 crore for FY26, compared to a profit of Rs 17 crore in the previous year. Total income for the year stood at Rs 3,153 crore, while total expenses climbed to Rs 3,167 crore, reflecting pressure across key cost heads.
In the March quarter, revenue came in at Rs 792 crore, compared to Rs 711 crore in the same period last year. The company reported a quarterly net loss of Rs 13 crore, against a profit of Rs 2 crore a year earlier.
Cost pressures remained visible across operations. Material costs rose to Rs 995 crore for FY26, while employee expenses increased to Rs 428 crore. Other expenses, the largest component, stood at Rs 1,229 crore, underscoring the impact of store operations and expansion-related spends.
Depreciation and amortisation expenses also climbed to Rs 392 crore for the year, reflecting continued investments in store infrastructure and growth.
At the operating level, the company reported a loss before tax of Rs 37 crore for FY26, compared to a profit of Rs 23 crore in FY25. Exceptional items added Rs 24 crore to the cost burden during the year.
On the balance sheet, total assets rose to Rs 3,256 crore as of March 31, 2026, up from Rs 3,041 crore a year earlier, indicating ongoing expansion. Net worth stood at Rs 1,389 crore.
Despite profitability pressures, operating cash flow remained resilient at Rs 507 crore, highlighting underlying business strength and demand stability.
The numbers paint a familiar picture in the quick-service restaurant space, growth continues to be served hot, but margins are still finding their footing.
