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Office leasing across India's seven top cities shows a mixed pattern for the July-September quarter, with an overall slight decline of 1 per cent to 172 lakh (17.2 million) square feet. Bengaluru, Hyderabad, and Delhi-NCR witnessed notable drops, while Mumbai, Pune, and Chennai reported strong growth. Despite subdued quarterly performance in certain regions, gross leasing for the first nine months of the year grew 8 per cent compared with last year. The office market remains resilient, driven significantly by Global Capability Centers, which contributed nearly 40 per cent of total leasing activity.
Office space leasing across India's seven major cities is expected to decline by around 1 per cent during the July-September period, reaching 172 lakh (17.2 million) square feet, Colliers India has reported. The decline is largely driven by lower demand in Bengaluru, Hyderabad, and Delhi-NCR. By comparison, gross leasing stood at 174 lakh (17.4 million) square feet in the same period last year. Advertisement
Gross absorption figures do not include lease renewals, pre-commitments, or transactions where only a Letter of Intent has been signed. In Bengaluru, leasing is anticipated to drop by 25 per cent to 47 lakh (4.7 million) square feet from 63 lakh (6.3 million) square feet a year earlier. Delhi-NCR is projected to see leasing fall to 16 lakh (1.6 million) square feet from 24 lakh (2.4 million), while Hyderabad may witness a steep 48 per cent decline to 15 lakh (1.5 million) square feet from 29 lakh (2.9 million). Colliers did not specify the reasons behind the decline in these three markets.
Other major cities are showing contrasting trends. Chennai is expected to see office space demand surge by 86 per cent, reaching 26 lakh (2.6 million) square feet from 14 lakh (1.4 million) square feet. Mumbai and Pune have maintained strong demand during the quarter, with Mumbai's gross leasing estimated to rise 76 per cent to 30 lakh (3 million) square feet from 17 lakh (1.7 million), and Pune's leasing growing 42 per cent to 37 lakh (3.7 million) square feet from 26 lakh (2.6 million). In Kolkata, office space demand remained largely flat at 1 lakh (0.1 million) square feet during the quarter.
Despite the muted demand in some regions, gross office leasing for the January-September period is projected to grow 8 per cent to 509 lakh (50.9 million) square feet from 473 lakh (47.3 million) square feet in the same period last year. Arpit Mehrotra, Managing Director of Office Services, India at Colliers, noted that India's office market continues to demonstrate resilience, crossing the 50 million square feet mark in the first nine months of the year despite external volatilities and trade tensions. He highlighted that Global Capability Centers (GCCs) have already leased nearly 20 million square feet across the top seven cities this year, accounting for around 40 per cent of overall office demand.
Source PTI
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