India’s office market continued its strong growth trajectory in the April-June period (Q2 2025), recording 17.8 million square feet (msf) of gross leasing across the top seven cities – an 11 per cent increase compared to Q2 2024, a report showed on Thursday.
This also marks a 12 per cent growth compared to the office space demand in the first quarter of the year and underscores the resilience of commercial real estate in India even in the wake of ongoing global uncertainties, said the report by Colliers.
In the first half this year (H1 2025), growth momentum remained strong with 33.7 msf of Grade A space uptake, a 13 per cent annual growth.
Bengaluru led leasing activity during Q2 with a 27 per cent share at 4.8 million square feet, reaffirming its position as India’s top office market. Hyderabad, Mumbai and Chennai also witnessed strong occupier traction, each recording over 2.5 million square feet of leasing in the quarter, the findings showed.
This momentum signals growing occupier confidence, particularly from flex space operators and firms across sectors such as technology, BFSI and engineering and manufacturing, etc.
“The fact that five of the seven major cities recorded over 2.0 million square feet of leasing each in a single quarter highlights the depth and vibrancy of India office market,” said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.
Backed by diversifying occupier base, a steady supply pipeline and growing investor appetite, 2025 is shaping up to be another impressive year for commercial real estate in India.
“Overall, office space demand looks well placed to reach 65-70 million square feet at least by the end of the year,” Mehrotra added.
New supply across the top seven office markets remained strong in Q2 2025, with 14.9 million square feet of completions – an 11 per cent increase year-on-year.
Conventional leasing remained buoyant at 13.5 million square feet, led primarily by the technology and BFSI sectors.
“Flex spaces are increasingly establishing themselves as a key demand driver in India’s office market. With 4.3 million square feet of leasing in Q2 2025 – a 65 per cent YoY rise – flex operators are not just fuelling demand, but also actively defining occupier workplace preferences,” said Vimal Nadar, National Director and Head of Research, Colliers India.
(IANS)
