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Housing Construction in Slovakia: Fourth Quarter and Full-Year 2025

Housing construction activity in Slovakia remained subdued in 2025, with both completed and newly started dwellings below long-term averages, according to data published by the Statistical Office of the Slovak Republic.

Fourth Quarter 2025

In the final quarter of 2025, 3,235 dwellings were completed. This represented a decline of more than one third compared with the same period of 2024 and was also below the average for fourth quarters over the previous ten years.

Family houses accounted for 68% of completed dwellings during the quarter. The Statistical Office noted that data for the third and fourth quarters of 2025 remain preliminary due to the introduction of a new electronic Statistical Register of Buildings, Houses and Dwellings, which replaced the previous quarterly reporting system.

At regional level, completions decreased year-on-year in six of the eight regions. The most significant decline was recorded in Bratislavský kraj, where completions fell by 71%, followed by Trnavský kraj with a 22% decrease. In contrast, Žilinský kraj and Banskobystrický kraj registered slight increases.

Compared with the ten-year average for the same period, completions declined in all eight regions, with the largest gaps observed in Bratislavský and Košický kraj.

Construction Starts in the Fourth Quarter

In the fourth quarter of 2025, construction began on nearly 3,600 dwellings. The volume was broadly unchanged year-on-year but 37% lower than the long-term average for the corresponding period. Single-family houses represented 35% of new starts.

Five regions recorded a year-on-year decline in housing starts, with the sharpest slowdown in Košický kraj. Activity increased in three regions, including growth of more than 20% in Nitriansky and Trnavský kraj, while Bratislavský kraj saw starts double from a low base. Nevertheless, all regions remained below their ten-year averages.

Full-Year 2025: Completions

For the full year, 14,300 dwellings were completed, marking a 19% decrease compared with 2024. The annual figure was nearly one quarter below the average recorded between 2015 and 2024.

More than 2,000 completed dwellings were recorded in each of Trnavský, Žilinský and Bratislavský kraj. Year-on-year declines occurred in seven of the eight regions, ranging from a 2% decrease in Banskobystrický kraj to a 46% drop in Bratislavský kraj. Nitriansky kraj was the only region to report a slight increase.

In comparison with the ten-year average, housing completions were lower in all regions except one, with the largest shortfalls in Bratislavský, Košický and Trnavský kraj.

Full-Year 2025: Housing Starts and Units Under Construction

During 2025, construction began on 15,100 dwellings. While the year-on-year decline was modest, the total was 26% below the ten-year average.

Only half of the regions recorded a year-on-year decrease in housing starts; however, all eight regions remained below long-term averages.

At the end of 2025, 77,700 dwellings were under construction in Slovakia. This was 0.8% more than at the end of 2024 and 2% above the ten-year average, indicating a continued build-up of projects in progress despite weaker levels of new starts and completions.

Overall, the data suggest that residential construction in Slovakia remained below historical norms in 2025, with subdued completions and limited growth in new projects, while the stock of units under construction continued to rise slightly.

Source: SOSR

Survey: Broad Concern About Social Media Risks, Limited Support for Ban Up to Age 16

A large majority of people in Germany believe that social media poses risks for children and adolescents, but support for a broad age-based ban is limited. While most respondents favour restricting access for children under 12, there is no majority for raising the ban to age 16. Instead, measures such as media education, parental involvement and stricter regulation of platform providers receive significantly wider backing.

These findings come from a survey conducted in September 2025 by the Socio-Economic Panel (SOEP) at the German Institute for Economic Research (DIW Berlin), in cooperation with the German Center for Integration and Migration Research (DeZIM) and the University of Münster. Nearly 2,700 people participated in the study. The results were weighted to reflect the German population.

Risks Acknowledged, Opportunities Recognised

Approximately 90 percent of respondents consider social media use by children and young people to involve risks. At the same time, 63 percent also identify potential benefits. More than half of those surveyed view social media as both an opportunity and a risk.

Perceptions vary between groups. Teachers are particularly likely to emphasise risks, while younger respondents—especially members of Generation Z—and individuals with lower levels of formal education tend to place greater emphasis on potential benefits.

According to Christian Hunkler, head of survey methodology and management at SOEP, the results indicate that public opinion is more nuanced than the debate over blanket prohibitions might suggest.

Majority Supports Ban for Under-12s

A total of 71 percent of respondents support banning social media use for children under the age of 12. However, only around one-third favour extending such a ban to young people up to 16 years old.

A prohibition on social media use in schools receives support from 59 percent of participants, although younger respondents are more critical of this measure. Teachers are more likely than other groups to support restrictions for younger children, but their views on school-based bans are similar to those of the wider population.

Strong Support for Alternative Measures

There is particularly high approval for measures focused on education and regulation. More than 90 percent of respondents support stronger promotion of media literacy, and a similarly high share back binding regulatory requirements for platform operators.

The researchers note that households with children aged between nine and 16 do not differ substantially from other households in their assessments. Having children in this age group does not automatically correspond to stronger support for comprehensive bans.

The study’s authors conclude that differentiated approaches—combining protective measures, education and clearer responsibilities for digital platforms—are more likely to gain public acceptance than broad age-based prohibitions. They also suggest that measures lacking broad social support, such as strict age verification systems, could prove difficult to enforce in practice.

Czech Inflation Falls to 1.4% in February, Lowest Since 2016

Annual inflation in the Czech Republic slowed to 1.4% in February, marking the lowest rate since October 2016, according to a preliminary estimate released by the Czech Statistical Office (ČSÚ).

Consumer prices declined by 0.1% compared with January. Final figures are scheduled for publication on 10 March. In recent months, final data have confirmed preliminary estimates.

In January, annual inflation stood at 1.6%, also the lowest level in more than nine years. Analysts previously attributed part of the slowdown to changes in the financing of renewable energy support, with costs shifted from households to the state budget.

Energy Prices Down, Services Still Rising

Energy prices were 7.8% lower year-on-year in February. By contrast, services recorded annual growth of 4.5%. Prices of goods declined by 0.7% compared with the same month last year.

Food and non-alcoholic beverages were 0.4% more expensive year-on-year, while tobacco and alcoholic drinks increased by 4%. Excluding energy, consumer prices would have risen by 2.7% annually in February.

On a month-on-month basis, energy prices were broadly unchanged. Services rose by 0.5%, while goods prices fell by 0.5%. Food and non-alcoholic beverages were 1.5% cheaper than in January, and alcohol and tobacco prices declined by 1.2%.

Analysts: Food Prices Key to February Decline

Economists attribute the further easing of inflation mainly to lower food prices. Agricultural producer prices and food industry prices have been in decline, reflecting last year’s strong harvest, particularly in crop production.

At the same time, analysts note that services inflation remains elevated. Annual growth in services prices slowed slightly from January’s 4.7% to 4.5%, but continues to reflect pressure in the housing market, including rents and imputed rents, which measure the cost of owner-occupied housing.

Outlook Dependent on Energy Markets

Looking ahead, analysts highlight geopolitical developments as a key risk factor. Tensions in the Middle East have led to higher oil and gas prices in recent weeks. Should energy prices continue to rise for a prolonged period, inflation could increase again later in the year.

If commodity prices stabilise, analysts expect inflation to remain close to the Czech National Bank’s 2% target in 2026. However, sustained increases in oil and gas prices could alter that outlook.

Given the current inflation trajectory and continued pressure in services, economists do not expect the Czech National Bank to adjust interest rates in the near term. The central bank’s main policy rate currently stands at 3.5%, and some analysts anticipate it may remain at that level for the rest of the year.

Source: CTK

India’s Real Estate Investment Outlook 2026: Strong Capital Flows Set the Tone

India’s property investment market enters 2026 following one of its most active years on record. Industry data from multiple advisory firms show that 2025 closed with the highest annual institutional investment volumes ever recorded in the country’s real estate sector, reflecting broad investor confidence and improving macroeconomic conditions.

Total institutional investments in Indian real estate during 2025 crossed the $8 billion mark, with the final quarter contributing an unusually large share of the annual total. Several sizeable transactions were concluded before year-end, underscoring strong appetite for income-producing assets and long-term exposure to India’s urban growth story.

Domestic capital played a particularly important role in driving activity. Investment from Indian institutions and family offices increased significantly compared with the previous year, partially offsetting a decline in overseas inflows. While foreign participation moderated year-on-year, global investors continued to focus on large, stabilised assets in major cities, especially in the office segment.

Commercial office properties accounted for the largest share of total investments in 2025. Strong leasing demand in Bengaluru, Mumbai and the National Capital Region supported investor interest in high-quality office buildings. Stable occupancy levels and steady rental growth helped maintain pricing discipline across core markets. Residential and industrial properties also attracted capital, particularly in projects aligned with long-term urbanisation and supply-chain expansion trends.

Macroeconomic conditions contributed to the supportive investment environment. India maintained solid economic growth during the year, while inflation remained relatively contained compared with global benchmarks. Monetary policy adjustments and improved liquidity conditions strengthened financing availability, supporting both developers and investors. Non-banking financial institutions continued to expand their lending portfolios, particularly in housing finance and project funding, reinforcing credit flows into the property sector.

Pricing dynamics across prime real estate assets remained broadly stable in 2025. Industry reports indicate that yield levels on top-tier commercial properties changed little over the year, suggesting a balance between investor demand and available supply. Analysts expect this stability to continue into 2026 rather than a sharp repricing cycle, with returns increasingly driven by income performance rather than rapid capital appreciation.

Listed real estate investment platforms also remained an important feature of the market. India’s publicly traded office property trusts collectively manage substantial portfolios of Grade A assets across major cities. Their performance through 2025 reflected sustained investor interest in structured, income-generating real estate exposure.

Although overseas real estate investment volumes declined compared with 2024, broader foreign direct investment into India across sectors remained strong. This has reinforced confidence in India’s economic trajectory and its position as a preferred destination for long-term capital allocation.

Looking ahead to 2026, market participants anticipate continued institutionalisation of India’s property sector. Office assets are expected to remain a core focus, while industrial and logistics properties may see rising allocations as supply-chain expansion and domestic manufacturing growth continue. Residential projects in high-growth corridors are also likely to attract structured capital.

Overall, India’s real estate market enters 2026 on a stable footing, supported by solid economic fundamentals, expanding domestic investment participation and sustained demand for quality assets. While global conditions will influence capital flows, the sector’s performance in 2025 provides a strong base for continued activity in the year ahead.

Source: CIJ.World India Research & Analysis Team

December Rent Trends Show Continued Growth in India’s Property Market Heading Into 2026

As India’s real estate market closed out 2025, December continued to shape rental pricing trends across both residential and office segments, according to industry data and market reports. The final month of the year remains a crucial period for lease renewals, landlord incentives and occupier decisions that influence rent movements in the year ahead.

Office Rent Growth and Market Activity

Office leasing activity in India reached a record level in 2025, with total absorption of around 82.6 million square feet across key cities — the highest on record for the third consecutive year — according to CBRE’s quarterly figures. The strong annual performance was supported by continued demand from corporate occupiers, including technology firms, Global Capability Centres (GCCs) and flexible workspace operators. Gross leasing in the fourth quarter alone topped 22 million square feet, led by Bengaluru, Mumbai and the National Capital Region (NCR). Average rents in major office markets also rose through the second half of 2025, with some markets reporting year-on-year increases of up to 10–16% as occupier demand outpaced available space. Rents edged higher even in traditionally slower periods, reflecting a tightening supply situation and growing tenant confidence. 

Industry surveys from JLL show that office rental rates continued to rise modestly across major cities in Q4 2025, with Hyderabad, Delhi NCR, Bengaluru and Mumbai all recording quarterly rent increases. Vacancy rates reportedly declined in several urban markets as occupiers renewed or expanded space commitments. 

Office landlords increasingly used incentives to secure long-term deals toward year end, including rent-free periods on multi-year leases for new occupiers or renewals, a common strategy in competitive submarkets. This reflects both occupier interest in cost predictability and landlords’ efforts to lock in tenancy ahead of 2026.

Residential Rent Trends

Residential rental inflation remained positive in 2025, although growth rates moderated compared with the steep increases seen in previous years. According to a residential market analysis reported by The Economic Times, average rental growth across six major Indian cities — Bengaluru, Mumbai, Delhi NCR, Hyderabad, Pune and Chennai — ranged between approximately 7% and 9% in the first half of 2025. This represented a slowdown from higher annual increases recorded in earlier post-pandemic years, as housing supply improved and rental markets stabilized. 

Rental inflation continued into the latter part of the year. Separate reporting on prime residential rents in late 2025 indicated that rents in core locations of cities such as Mumbai, Bengaluru and Gurugram saw sharper increases, driven in part by demand near employment hubs and limited affordable inventory. These price pressures have been especially visible in micro-markets with strong connectivity and job growth.

Migration and Demand Drivers

Population movement played a role in rental trends during December and across 2025. Return-to-city migration following holiday seasons and sustained demand from corporates requiring office-proximate housing supported rental absorption in urban centres. Migrant inflows toward employment hubs such as Gurugram, Hyderabad and Bengaluru contributed to tightening residential rental markets. The rental increase in IT corridors and other high-demand areas has been linked to this migration pattern.

Landlord and Occupier Strategies

Both residential and commercial landlords adopted incentive strategies toward year end to secure renewals and reduce vacancy risk. In the office segment, landlords offered rent-free periods and other lease concessions to encourage longer leases with key tenants. Residential landlords, in contrast, focused on value-added benefits for renters such as offering furnished units and flexible deposit structures rather than deep headline rent cuts.

Corporates continued to treat December as a strategic period for office footprint decisions, often finalising space renewals or expansions ahead of the new financial year. Many companies also evaluated upgrades to sustainable, high-performance buildings to align with environmental, social and governance (ESG) priorities.

Outlook for 2026

Industry analysts expect rent growth in both residential and office markets to persist in 2026, though at a moderated pace compared with the post-pandemic surge years. Continued economic expansion, return-to-office mandates, and limited availability of quality inventory in core micro-markets are likely to support rental stability through the year.

Office markets across Bengaluru, Delhi NCR and Mumbai are expected to remain active, with further leasing growth anticipated as occupiers expand or optimise portfolios. Residential rentals may continue to rise where demand outstrips supply, particularly in employment hubs and metro suburbs.

Overall, the December snapshot confirms that rental pricing dynamics remain a key barometer for India’s real estate trajectory as stakeholders head into 2026.

Source: CIJ.World India Research & Analysis Team

India Residential Market Ends 2025 With Higher Prices and a Shift Toward Premium Homes

India’s residential property market finished 2025 with mixed results, showing relative stability in sales values but a continued shift in buyer preference toward higher-priced homes. Recent industry reports suggest that although total unit sales were flat or slightly lower compared with 2024, housing prices increased across several major cities and the composition of new launches is moving increasingly toward premium segments.

According to a Knight Frank India report, total residential sales across the top eight cities reached around 348,000 units for the full year 2025, representing a marginal decline of about 1% compared with 2024. Despite the slight dip in volume, homes priced above ₹1 crore accounted for around half of all transactions, reflecting a noticeable tilt toward higher-value properties. This premium segment also saw year-on-year growth in absolute terms, while sales of more affordable units declined significantly.

Prices across many markets showed consistent growth in 2025. The National Capital Region recorded the highest year-on-year price increase of approximately 19%, followed by cities such as Hyderabad and Bengaluru, which also posted double-digit gains. Markets including Mumbai and Chennai recorded more moderate price rises, with improvements tied closely to demand for quality and location.

Information from Anarock Group indicates that in some markets, sales volumes declined more sharply — by as much as 14% year-on-year when viewed across seven major cities, while total sales value increased by an estimated 6%, supported by traction in higher-ticket homes.

Quarterly Patterns and Launch Activity

Sales activity in the fourth quarter of 2025 softened across most regions, with home registrations and transactions slowing toward year-end. Meanwhile, new project launches also moderated compared with earlier periods, with industry analysts noting that developers increasingly focused on mid-to-high end segments where demand remains more resilient.

In the NCR region, the number of new project launches increased year-on-year in late 2025, a trend that market observers interpret as laying the groundwork for supply entering in 2026. Other major hubs such as Mumbai, Bengaluru and Hyderabad are also expected to see fresh launches in 2026, with developers targeting both premium corridors and expanding peripheral locations to capture evolving demand patterns.

Affordability Dynamics and Market Structure

Market data shows a continued divergence between price tiers. Homes in the high-value category have taken up a larger share of overall sales compared with lower-priced segments. Transactions for homes priced below ₹50 lakh (approx. 46,644 Euro) declined both in absolute numbers and as a share of total sales, while mid-market and luxury segments accounted for a growing portion of activity.

Industry analysts point to several factors underlying these shifts, including rising land and construction costs, tightening availability of well-located affordable inventory in certain micro-markets, and buyers’ growing preference for larger, better-amenitised homes. Demand conditions in urban centres are also influenced by broader economic factors such as income growth, household savings and urbanisation trends.

Outlook for 2026

Looking ahead, developers and market watchers expect housing demand to remain concentrated in the mid-to-premium tiers, driven by end-user buyers and long-term residential needs. Affordable housing segments may see renewed policy support and supply initiatives, but price pressures and limited inventory have constrained activity in lower ticket categories.

As India’s residential real estate sector adjusts to changing demand dynamics, continued monitoring of price trends, inventory levels and affordability indicators will be critical in assessing market health and alignment with broader economic growth.

Source: CIJ.World India Research & Analysis Team

India Industrial & Logistics Investment Review 2025: Record Capital Flows and REIT Momentum

India’s real estate investment market recorded strong activity in 2025, with the industrial and logistics segment emerging as one of the primary destinations for institutional capital. Data published by leading property consultancies indicate that overall real estate investments reached multi-year highs, supported by improving financing conditions, stable asset performance and sustained occupier demand.

The final quarter of 2025 was particularly active. Industry reports show that quarterly investment volumes exceeded the $4 billion mark, making it one of the strongest quarters on record for Indian real estate. Industrial and logistics assets accounted for a substantial share of these transactions, reflecting investor confidence in the long-term fundamentals of the sector. Market participants attribute the year-end surge in part to improved liquidity conditions and expectations that yields in core assets may tighten in the coming years.

Leasing fundamentals in the warehousing sector remained solid throughout the year. According to market data from Cushman & Wakefield, Colliers and JLL, annual industrial and logistics absorption across major Indian cities ranged between approximately 45 and 50 million square feet in 2025, reflecting steady year-on-year growth. Demand was concentrated in Grade A facilities, which continued to dominate leasing across primary logistics hubs such as Delhi NCR, Mumbai, Bengaluru, Chennai, Pune and Hyderabad.

Total Grade A warehousing stock across India’s leading markets surpassed 500 million square feet by late 2025, reinforcing the institutional scale of the segment. Third-party logistics providers, e-commerce operators and manufacturing companies were among the most active occupiers, driven by supply chain optimisation and expanding distribution networks.

Several high-value portfolio transactions underscored the depth of investor appetite. In November 2025, CPP Investments and logistics developer IndoSpace announced the acquisition of a portfolio of fully operational logistics parks across major Indian markets in a transaction valued at approximately $471 million. The portfolio included assets in key distribution corridors such as Pune, Chennai and Delhi NCR. Around the same period, Brookfield India Real Estate Trust completed additional acquisitions, highlighting sustained capital raising capacity and continued investor interest in income-generating real estate platforms.

Institutional investors have increasingly focused on large, stabilised logistics portfolios that meet global standards in terms of governance, sustainability and lease structure. The concept of assembling “REIT-ready” warehousing assets has gained traction, with developers and investors seeking to build scalable platforms aligned with long-term capital.

The sector continues to benefit from structural drivers including domestic manufacturing expansion, supply chain diversification strategies, growth in e-commerce and infrastructure development such as freight corridors and logistics parks. These factors have supported rental stability and maintained relatively attractive yield spreads compared with other mature markets in Asia.

Looking ahead to 2026, industry analysts expect industrial and logistics real estate to remain a priority for both domestic and international investors. While global macroeconomic conditions will influence capital flows, India’s warehousing sector is viewed as structurally supported by consumption growth and supply chain modernisation. Following a year of strong deal closures and portfolio consolidation, the segment enters 2026 with sustained institutional momentum and a growing role within India’s broader real estate investment landscape.

Source: CIJ.World India Research & Analysis Team

India’s Warehousing Market Closes 2025 on Strong Note as Year-End Demand Peaks

India’s warehousing and logistics sector recorded robust activity in 2025, supported by sustained e-commerce growth, third-party logistics (3PL) expansion and structural supply chain shifts. Industry data from leading real estate consultancies indicate that December continued to represent one of the busiest periods of the year for inventory movement and distribution activity.

According to data published by property advisory firms including Colliers, JLL and Cushman & Wakefield, warehousing demand across India’s top markets remained strong through 2025. Annual leasing volumes ranged between approximately 45–50 million square feet across major cities, reflecting double-digit growth compared with the previous year in several markets.

India’s total Grade A warehousing stock across the top eight cities surpassed 500 million square feet by late 2025, with continued expansion in cities such as Mumbai, Delhi NCR, Bengaluru, Chennai, Hyderabad, Pune, Kolkata and Ahmedabad.

Industry reports also indicate that third-party logistics providers remained among the largest occupiers of warehouse space, accounting for roughly one-quarter to one-third of total leasing in several quarters during 2025.

December traditionally sees elevated logistics activity in India, driven by year-end retail demand, festive consumption, promotional campaigns and seasonal product cycles. E-commerce platforms typically experience a surge in deliveries during the final weeks of the year, contributing to higher warehouse throughput and distribution volumes.

Retailers and consumer brands often increase inventory levels during this period to manage holiday demand, protect service levels and clear quarterly targets. As a result, regional distribution centres and last-mile hubs operate at higher capacity compared with other months.

E-commerce growth continues to influence warehouse location strategy, with increasing emphasis on Tier-2 and Tier-3 cities. Industry observers note that online retailers are expanding deeper into smaller urban markets, prompting demand for strategically positioned fulfilment and sorting centres.

The post-pandemic period has accelerated India’s shift toward faster delivery models, including same-day and next-day fulfilment. Major e-commerce operators have continued investing in logistics infrastructure, including fulfilment centres, delivery stations and automation technology.

Market research reports indicate that capital expenditure by leading e-commerce firms has focused on improving last-mile capabilities and increasing storage capacity ahead of peak seasons.

Demand for temperature-controlled storage has also grown, particularly in pharmaceuticals and food distribution. India’s cold chain market has expanded steadily in recent years, driven by vaccine logistics, biologics distribution and rising demand for frozen and ready-to-eat food products.

Industry estimates place the Indian cold chain market in the multi-billion-dollar range, with pharmaceuticals representing a significant share. However, compliance and standardisation remain ongoing challenges, particularly in maintaining international quality and temperature control benchmarks across operators.

Seasonal consumption patterns in December contribute to higher demand for refrigerated transport and storage, especially for dairy products, frozen foods and perishable goods.

Third-party logistics providers have strengthened their role in managing peak demand periods. In 2025, 3PL operators remained one of the largest occupier categories in the warehousing segment. Industry projections suggest the Indian 3PL market will continue expanding steadily over the remainder of the decade.

Technology adoption has become central to managing year-end spikes. Many logistics firms are investing in predictive analytics, automation, warehouse management systems and AI-driven demand forecasting to optimise inventory planning and reduce congestion during peak periods.

With structural demand drivers such as e-commerce growth, supply chain diversification and urban consumption trends intact, India’s warehousing sector enters 2026 with positive momentum. While December remains a peak inventory month, long-term growth will depend on infrastructure upgrades, cold chain modernisation and continued investment in automation and compliance standards.

Industry analysts note that maintaining capacity discipline and improving operational efficiency will be key as logistics volumes continue to scale across the country.

Source: CIJ.World India Research & Analysis Team

Flexible Workspace Operators Close 2025 on Strong Footing as Enterprise Demand Accelerates

India’s flexible workspace sector ended 2025 with sustained leasing momentum, reinforcing its growing role within the broader office real estate market. Industry data from leading property consultancies show that flex operators accounted for a significant share of total office leasing during the year, supported by continued hybrid work adoption and rising enterprise demand.

Across 2025, India’s total office leasing crossed 80 million square feet, according to major brokerage estimates. Flexible workspace operators contributed a meaningful portion of that activity, with several reports indicating that flex spaces accounted for roughly 15–20% of quarterly leasing volumes in certain periods.

Market researchers estimate that India’s total flexible office stock now exceeds 80 million square feet nationwide. Industry forecasts suggest that the segment could approach or surpass the 100 million square feet mark by 2026–27, driven by corporate outsourcing of workspace management and expansion into new cities.

India’s largest flexible workspace providers — including Awfis, Smartworks, WeWork India and IndiQube — continued to expand their presence in 2025 through large enterprise transactions.

Smartworks secured multiple large-format deals during the year. Among them was a transaction in Kolkata’s Salt Lake business district, where approximately 170,000 square feet was leased to a major IT services company, with capacity for around 3,000 employees. The company also signed a significant agreement in Pune’s Marisoft Campus toward the end of 2025, reflecting continued enterprise demand outside traditional core CBD locations.

Awfis Space Solutions strengthened its national footprint through its asset-light expansion strategy. The company, which went public in 2024, reported revenue growth in the first half of FY2026 and remains one of India’s largest domestic flex operators by centre count. Awfis continues to expand in both Tier-1 and emerging Tier-2 markets.

IndiQube, which completed its IPO in 2025, has accelerated growth plans following its listing. The company operates more than 100 centres across multiple cities and has secured several large enterprise mandates in Bengaluru and other technology hubs. It has also outlined plans to expand into Tier-2 cities, targeting demand from growing GCCs and domestic corporates.

WeWork India also maintained steady enterprise traction during the year, focusing on managed office solutions for larger occupiers.

Technology firms, Global Capability Centres (GCCs), consulting companies and financial services firms were among the primary occupiers of flexible space in 2025. Rather than short-term co-working memberships, much of the recent demand has come from large enterprises entering into multi-year managed office agreements.

Industry analysts note that flex operators are increasingly competing for core corporate mandates rather than relying solely on startups and SMEs. Many occupiers are using flex space to complement long-term campus leases, manage project-based teams or enter new markets without committing to traditional long-duration leases.

According to industry research reports, India’s top ten flex operators collectively control more than two-thirds of the country’s total flexible office inventory, estimated at over 80 million square feet. Bengaluru, Delhi NCR, Mumbai, Hyderabad and Pune remain the largest markets, although secondary cities are emerging as expansion targets.

The flexible workspace sector has recorded double-digit annual growth over the past several years, with some market estimates placing the compound annual growth rate in the 18–22% range. Analysts expect continued expansion through 2027 as hybrid work models stabilise and corporates seek greater operational flexibility.

Entering 2026, the sector appears positioned for further consolidation and scale. Enterprise-led demand, expansion into new micro-markets and increasing integration of sustainability standards into office design are expected to shape growth.

With flex operators capturing a rising share of total office absorption and institutional capital showing continued interest in the segment, flexible workspace is increasingly viewed as a structural component of India’s commercial real estate market rather than a cyclical trend.

Source: CIJ.World India Research & Analysis Team

India Office Market Outlook 2026: Strong Leasing Momentum Sets the Stage for Continued Expansion

India’s office real estate market closed 2025 on a strong note, with record leasing activity across major cities and sustained demand from global and domestic occupiers. Market data from leading property consultancies indicate that 2025 marked the highest annual office leasing volume on record, positioning the sector for continued momentum in 2026.

Gross office leasing across India’s top cities exceeded 80 million square feet in 2025, surpassing previous annual highs. The final quarter of the year recorded particularly strong activity, with several markets reporting their best quarterly performance to date.

Bengaluru led national leasing volumes, followed by Delhi NCR, Hyderabad and Mumbai. These cities continued to attract multinational corporations, technology firms, financial institutions and Global Capability Centres (GCCs), which remained one of the largest contributors to overall absorption.

Net absorption also rose significantly year-on-year, reflecting steady occupier expansion rather than purely consolidation-driven transactions.

Demand in 2025 was supported by a diversified occupier base. GCCs accounted for a substantial share of total leasing, particularly in Bengaluru and Hyderabad, while technology and banking, financial services and insurance (BFSI) firms remained active across major hubs.

Flexible workspace operators continued to play a growing role in the ecosystem, accounting for a notable share of transactions in certain quarters. Many occupiers used flex space as a transitional or complementary solution alongside long-term campus commitments.

New completions across the top seven office markets remained substantial, but absorption levels helped maintain overall vacancy stability in prime micro-markets. High-quality, Grade A buildings in established corridors continued to attract strong interest, especially those offering sustainability certifications and modern amenities.

Rental growth was observed in select prime sub-markets, particularly in Bengaluru, Hyderabad and parts of Delhi NCR. Yield levels in core office assets remained broadly stable, typically in the 8–8.5 percent range, reflecting investor confidence in India’s office fundamentals.

Bengaluru continued to dominate both supply and leasing volumes, with large campus transactions and strong pre-leasing activity in upcoming developments. Hyderabad saw significant pipeline concentration in western corridors such as Gachibowli and Madhapur, supported by competitive rental levels relative to other metros.

Delhi NCR recorded improving occupancy levels, particularly in Gurugram and select Noida sectors, where a portion of upcoming supply is already pre-committed. Pre-leasing trends across key markets suggest that occupiers are securing space well ahead of project completion to lock in pricing and ensure availability.

Industry observers expect 2026 to build on the momentum of 2025, supported by India’s continued positioning as a global operations hub. Occupiers are increasingly combining long-term campus strategies with flexible workspace components to manage workforce fluctuations.

Sustainability considerations are becoming more central to leasing decisions, with companies prioritising energy-efficient buildings and environmentally aligned workspaces.

While global economic conditions and geopolitical developments remain factors to monitor, the overall trajectory of India’s office market points toward sustained demand, stable yields and continued institutional interest in high-quality commercial assets through 2026.

Source: CIJ.World India Research & Analysis Team

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