Bengaluru— India’s office real estate market recorded robust growth in the April–June quarter (Q2 2025), with gross leasing activity reaching 17.8 million square feet (msf) across the top seven cities — an 11 percent increase compared to Q2 2024, according to a new report released Thursday by Colliers.
The performance also reflects a 12 percent rise over Q1 2025, reaffirming the strength and resilience of India’s commercial real estate sector despite ongoing global economic uncertainties.
In the first half of 2025, India witnessed a total of 33.7 msf of Grade A office space absorption — representing a 13 percent year-on-year increase — driven by a mix of conventional leasing and the rising influence of flexible workspace providers.
Bengaluru continued to dominate leasing activity with a 27 percent share, translating to 4.8 msf leased in Q2 alone. Other major cities including Hyderabad, Mumbai, and Chennai also saw strong momentum, each surpassing 2.5 msf in quarterly leasing activity.
“The fact that five of the seven major cities recorded over 2 million square feet of leasing each in a single quarter highlights the depth and vibrancy of India’s office market,” said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.
Growth was fueled by increasing demand from sectors such as technology, BFSI, engineering, and manufacturing, alongside a growing appetite from flex space operators. These trends signal rising confidence among occupiers and a diversified tenant base.
Flex workspaces emerged as a major growth driver, accounting for 4.3 msf in leasing during Q2 — a 65 percent year-over-year increase. “Flex operators are not just fueling demand, but actively shaping occupier preferences,” said Vimal Nadar, National Director and Head of Research, Colliers India.
New supply in Q2 2025 remained steady, with 14.9 msf of completions across the top seven markets — up 11 percent year-on-year. Conventional leasing alone accounted for 13.5 msf, led by the tech and financial sectors.
Looking ahead, Colliers projects total office space demand in India could reach between 65 and 70 msf by the end of 2025, supported by a healthy supply pipeline, a diverse occupier base, and sustained investor interest. (Source: IANS)
