Net absorption up by 12.3% q-o-q

• Gross leasing volumes rose 9.4% q-o-q, driven by robust occupier demand driving the office market towards a strong finish for the year. This brought 2025 gross leasing to 8.7 million sq ft, a 9.7% increase from 2024, second only to 2023 historic high.
• Demand was driven by co-working providers with 23.5%, followed Telecom, Healthcare-Biotech, Real Estate & Construction and IT/ITES with 18.2% and 18.1% respectively. Net absorption jumped by 12.3% q-o-q, with the PBD OMR submarket accounting for 63.7% of Q4 figures.

Completions in Q4 total 1.1 million sq ft

• Two new projects, Embassy Splendid TechZone Block 10 and KRC Commerzone 2 Block 3, both in the PBD OMR submarket, were completed in Q4, adding 1.1 million sq ft to the city’s office Grade A stock. The former was 100% pre-leased.
• A total of 4.3 million sq ft of new supply entered the city in 2025, up by 27.5% y-o-y. City vacancy rates dropped by 67 bps q-o-q to 7.1% in Q4 2025.

Rents up by 4.7% y-o-y

• The highest rent growth in 2025 was observed in PBD GST at 13.5% y-o-y, with declining vacancy in a key asset driving up rents. In SBD OMR, rents rose by 7.0% y-o-y. On a q-o-q basis, PBD OMR rents rose by 1.8% due to new completions commanding higher rentals.
• Capital values were also relatively stable q-o-q, while rising in tandem with rents on a y-o-y basis. Yields, as a result, remained unchanged as well.

Outlook: Strong demand will sustain high interest in premium assets

• Strong demand, supported by existing pre-commitments and ongoing deals, is anticipated to result in healthy net absorption over the next 12 to 18 months. The most active occupiers are in the IT, flex and BFSI sectors, and demand levels are expected to remain robust.
• Over the next 12 to 18 months, 6.5-7 million sq ft of new supply is planned, with PBD OMR and SBD submarkets accounting for the major share. While SBD and SBD OMR will remain office hotspots, PBD OMR is expected to see significantly higher demand in the coming quarters.