India’s office space market is buzzing in 2025, with leasing demand crossing the 50 million sq. ft. mark in just the first nine months, according to Colliers. This represents an 8% year-on-year (YoY) growth, largely driven by Global Capability Centers (GCCs) and the technology sector.
Quarterly activity in Q3 2025 stood at 17.2 million sq. ft., slightly lower than last year, but the momentum remains strong across India’s top seven office hubs.
Bengaluru Dominates, But Pune & Chennai Shine
- Bengaluru remained the country’s biggest office market with 14 msf leased (27% share) in Jan–Sep 2025.
- Pune & Chennai have already surpassed their full-year 2024 demand in just nine months of 2025.
- Together, Pune, Mumbai, and Chennai accounted for over half of Q3 2025 leasing, each city showing more than 40% YoY growth.
City-Wise Office Leasing (Grade A Gross Absorption)
| City | Q3 2024 (msf) | Q3 2025 (msf) | YoY Change | YTD 2024 (msf) | YTD 2025 (msf) | YoY Change |
|---|---|---|---|---|---|---|
| Bengaluru | 6.3 | 4.7 | -25% | 15.1 | 14.0 | -7% |
| Chennai | 1.4 | 2.6 | 86% | 4.9 | 8.1 | 65% |
| Delhi NCR | 2.4 | 1.6 | -33% | 6.8 | 7.1 | 4% |
| Hyderabad | 2.9 | 1.5 | -48% | 8.4 | 6.4 | -24% |
| Kolkata | 0.1 | 0.1 | 0% | 0.6 | 0.8 | 33% |
| Mumbai | 1.7 | 3.0 | 76% | 7.1 | 8.0 | 13% |
| Pune | 2.6 | 3.7 | 42% | 4.4 | 6.5 | 48% |
| Pan India | 17.4 | 17.2 | -1% | 47.3 | 50.9 | 8% |
Source: Colliers
New Supply Surges, Led by Pune & Bengaluru
India’s office markets saw 16.6 msf of new completions in Q3 2025, a 15% jump YoY. Cumulatively, 41.4 msf of new supply has entered in Jan–Sep 2025, up 10% YoY.
- Pune was the biggest surprise, with a 4X jump in quarterly supply (4.6 msf).
- Bengaluru & Pune together contributed 54% of all new supply in 2025 so far.
- Hyderabad and Mumbai saw weaker completions compared to last year.
City-Wise New Supply Trends
| City | Q3 2024 (msf) | Q3 2025 (msf) | YoY Change | YTD 2024 (msf) | YTD 2025 (msf) | YoY Change |
|---|---|---|---|---|---|---|
| Bengaluru | 4.9 | 4.0 | -18% | 11.3 | 11.8 | 4% |
| Chennai | – | 2.3 | *NA | 0.9 | 3.8 | 322% |
| Delhi NCR | 3.3 | 3.1 | -6% | 6.5 | 6.9 | 6% |
| Hyderabad | 4.3 | 1.1 | -74% | 10.5 | 4.9 | -53% |
| Kolkata | – | – | 0% | 0.4 | 0.1 | -75% |
| Mumbai | 0.6 | 1.5 | 150% | 5.6 | 3.5 | -38% |
| Pune | 1.3 | 4.6 | 254% | 2.6 | 10.4 | 300% |
| Pan India | 14.4 | 16.6 | 15% | 37.8 | 41.4 | 10% |
Source: Colliers
Who is Driving the Demand?
- Technology sector: 36% share, leasing 15+ msf in 2025 (24% YoY growth).
- BFSI firms: 19% share, with Pune driving 40% of BFSI leasing in Q3 2025.
- Flex space: 9.2 msf leased in 9 months (18% share), close to record levels.
Conventional vs Flex Space Leasing
| Type | Q3 2024 | Q3 2025 | YoY % | YTD 2024 | YTD 2025 | YoY % |
|---|---|---|---|---|---|---|
| Conventional Leasing (msf) | 13.9 (80%) | 14.5 (84%) | 4% | 39.5 (84%) | 41.7 (82%) | 6% |
| Flex Space Leasing (msf) | 3.5 (20%) | 2.7 (16%) | -23% | 7.8 (16%) | 9.2 (18%) | 18% |
| Total | 17.4 | 17.2 | -1% | 47.3 | 50.9 | 8% |
Source: Colliers
Rentals Rise, Vacancy Steady
- Vacancy levels: Steady at 16.4% pan-India.
- Delhi NCR & Pune: Vacancies up by 100 bps due to large new supply.
- Rentals: Continued upward trend across most cities, making India still attractive for global players consolidating operations here.
Expert Speak
Arpit Mehrotra, MD, Office Services, Colliers India:
“India’s office market continues to demonstrate resilience, crossing the 50 msf benchmark despite global volatilities. GCCs alone contributed 40% of demand and will remain central in pushing total absorption close to 70 msf by 2025-end.”
Also Read: Mumbai Emerges as India’s BFSI GCC Powerhouse Amid Record Leasing Surge
