India’s commercial office space market is booming in 2025, with the first half (H1) recording a strong 33.7 million sq. ft. of Grade A space leasing, up by 13% year-on-year (YoY), according to Colliers India. This growth is being driven by strong demand from technology firms, BFSI, and flex space operators across the top seven cities in the country.
🏢 Q2 2025 Snapshot: 17.8 Million Sq. Ft. Leased
India’s office market clocked 17.8 million sq. ft. of gross leasing in Q2 2025, reflecting an 11% YoY growth. Bengaluru led the charge with a 27% share, followed by Hyderabad, Mumbai, and Chennai, each leasing over 2.5 million sq. ft.
Leasing Performance in Top 7 Cities (Grade A Leasing)
| City | Q2 2025 (msf) | Q2 2024 (msf) | YoY Change | H1 2025 (msf) | H1 2024 (msf) | YoY Change |
|---|---|---|---|---|---|---|
| Bengaluru | 4.8 | 4.8 | 0% | 9.3 | 8.8 | 6% |
| Chennai | 2.6 | 2.0 | 30% | 5.5 | 3.5 | 57% |
| Delhi-NCR | 2.2 | 1.9 | 16% | 5.5 | 4.4 | 25% |
| Hyderabad | 3.2 | 2.6 | 23% | 4.9 | 5.5 | -11% |
| Kolkata | 0.6 | 0.3 | 100% | 0.7 | 0.5 | 40% |
| Mumbai | 2.8 | 3.5 | -20% | 5.0 | 5.4 | -7% |
| Pune | 1.6 | 1.0 | 60% | 2.8 | 1.8 | 56% |
| Pan India | 17.8 | 16.1 | 11% | 33.7 | 29.9 | 13% |
“The robust performance in H1 2025 reflects sustained occupier confidence and strong market fundamentals,” says Arpit Mehrotra, Managing Director, Office Services, Colliers India.
📆 New Supply Grows: 14.9 Million Sq. Ft. Added in Q2
Grade A new supply reached 14.9 million sq. ft. in Q2 2025, a solid 11% YoY increase. Bengaluru, Hyderabad, and Pune collectively accounted for over 70% of completions in the first half.
New Grade A Supply Trends
| City | Q2 2025 (msf) | Q2 2024 (msf) | YoY Change | H1 2025 (msf) | H1 2024 (msf) | YoY Change |
| Bengaluru | 4.1 | 2.0 | 105% | 7.8 | 6.4 | 22% |
| Chennai | 1.3 | 0.6 | 117% | 1.5 | 0.9 | 67% |
| Delhi-NCR | 1.1 | 2.7 | -59% | 3.8 | 3.2 | 19% |
| Hyderabad | 3.5 | 3.6 | -3% | 3.8 | 6.2 | -39% |
| Kolkata | 0 | 0.2 | -100% | 0.1 | 0.4 | -75% |
| Mumbai | 1.6 | 4.0 | -60% | 2.0 | 5.0 | -60% |
| Pune | 3.3 | 0.3 | 1000% | 5.8 | 1.3 | 346% |
| Pan India | 14.9 | 13.4 | 11% | 24.8 | 23.4 | 6% |
💼 Who’s Leasing? Tech & Flex Players Drive Demand
Sector-Wise Leasing Share (Q2 2025):
- Technology firms: 47% of conventional leasing
- BFSI: 19%
- Flex spaces: 24% of total demand
“Flex spaces are no longer secondary. With 4.3 million sq. ft. leased this quarter, they’re shaping workplace trends,” says Vimal Nadar, Head of Research, Colliers India.
Conventional vs Flex Space Leasing
| Category | Q2 2025 (msf, %) | Q2 2024 (msf, %) | YoY Change |
| Conventional Leasing | 13.5 (76%) | 13.5 (84%) | 0% |
| Flex Leasing | 4.3 (24%) | 2.6 (16%) | 65% |
| Total | 17.8 | 16.1 | 11% |
🏠 Top Office Deals in Q2 2025
Major Conventional Leasing Deals
| City | Occupier | Area (sq. ft.) | Building | Micro Market |
| Hyderabad | Tata Consultancy Services | 1,018,400 | Rajapushpa Paradigm | Off SBD |
| Mumbai | Wipro | 387,100 | Mindspace Business Parks | Navi Mumbai |
| Kolkata | Capgemini | 241,000 | Candor | PBD |
| Delhi NCR | Tata Consultancy Services | 240,000 | NSL Techzone | Noida Expressway |
| Chennai | Vels University | 220,000 | Anand IT Park | Off CBD |
Key Flex Operator Deals
| City | Flex Operator | Area (sq. ft.) | Building | Micro Market |
| Mumbai | Smartworks | 411,200 | Intellion Park | Navi Mumbai |
| Hyderabad | Tablespace | 270,000 | Phoenix Centaurus | Off SBD |
| Chennai | Incuspaze | 250,500 | Olympia Crest | OMR Zone 1 |
| Bengaluru | WorkEZ | 175,000 | BS Tech Park | ORR |
| Bengaluru | Smartworks | 159,000 | Global Tech Park | SBD 1 |
⚡ Outlook: On Track to Cross 65 Million Sq. Ft. in 2025
With H1 2025 already clocking 33.7 million sq. ft., Colliers projects total leasing to reach or exceed 65–70 million sq. ft. by year-end. This would mark another milestone for India’s commercial real estate sector.
Vacancy levels remained stable at 16.2%, despite significant supply additions. Rentals too stayed largely range-bound, keeping India competitive for global firms.
“India’s commercial real estate is evolving fast, and 2025 could be a record-breaking year,” adds Mehrotra.
Bottom Line: With tech, flex, and BFSI leading the charge, and cities like Bengaluru, Hyderabad, and Pune surging ahead in both demand and supply, India’s office real estate market is clearly entering a new growth phase.
Stay tuned for Q3 trends as leasing continues its upward trajectory.
