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India's office market recorded a healthy 11% year-on-year growth in gross leasing during the April-June quarter, reaching 178 lakh sq ft across seven major cities, as per Colliers India. Demand strengthened in Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, and Pune, while Mumbai was the only metro to witness a decline in activity. The data excluded lease renewals, pre-commitments, and LOI-based transactions. Industry experts noted that 2025 is continuing the growth momentum seen over the past two years, with projections suggesting that office space absorption could hit 65-70 million sq ft by year-end.
India's commercial real estate sector maintained its upward momentum during the April-June quarter this year, as gross office leasing touched 178 lakh sq ft an 11% increase compared to 161 lakh sq ft leased during the same period last year. The figures, released by Colliers India, reflect a strong revival in occupier sentiment, with sustained interest from corporates despite broader global economic uncertainties and geopolitical concerns. Advertisement
The data revealed that six out of the seven major commercial hubs Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, and Pune experienced growth in leasing activity. Bengaluru continued to lead the office space uptake, reinforcing its position as India's tech and innovation capital. Chennai and Hyderabad also registered impressive gains, buoyed by expansion from global capability centres and domestic IT firms. Kolkata, which has been witnessing a slow but steady commercial push, also saw positive leasing traction. Pune maintained a steady pace with continued interest from mid-sized IT/ITES firms and engineering companies.
However, Mumbai, India's financial capital, was the lone exception in this trend. The city saw a decline in gross leasing volumes during the quarter, with experts attributing the fall to a cautious approach by BFSI occupiers and a dip in large-ticket transactions. Space constraints and premium rental values in core commercial zones may have also contributed to the downward movement.
It's important to note that Colliers- leasing figures account only for gross absorption. This excludes lease renewals, pre-commitments, and transactions where only a Letter of Intent (LOI) has been signed. Therefore, the reported figures represent actual space take-up and not just intent-based or ongoing discussions.
Commenting on the overall performance, Arpit Mehrotra, Managing Director, Office Services, India at Colliers, observed that India's office market is continuing its upward trajectory in 2025, building on the recovery seen in the past two years. He stated that the momentum is being sustained by a more diverse occupier base, a robust upcoming supply pipeline, and rising investor appetite for quality office assets.
Mehrotra further projected that the total office space demand is on track to cross at least 65-70 million sq ft by the end of 2025. This outlook aligns with earlier industry reports that pegged 2024's gross absorption close to 60 million sq ft, marking the second year of strong post-pandemic recovery.
The current trends also reflect a gradual shift in occupier strategies, with firms prioritising flexible workspaces, employee-centric amenities, and greener infrastructure. Demand is increasingly skewed towards Grade A office spaces that offer better energy efficiency, wellness features, and seamless digital connectivity features that now play a major role in corporate real estate decisions.
Another contributing factor to the leasing surge has been the return-to-office mandates introduced by several large corporations. As hybrid models stabilise and more companies look to consolidate or expand operations, the demand for workspace in prime business districts and emerging corridors has picked up steadily.
This growth is not just limited to tech or ITES sectors. The report indicates that the demand is being driven by a mix of occupiers including engineering firms, consulting players, life sciences companies, and financial institutions highlighting the broadening nature of India's office occupier base.
Source- PTI
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