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)

“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

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

Top Office Deals in Q2 2025

Major Conventional Leasing Deals

Key Flex Operator Deals

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.

Also Read: 17 emerging real estate hotspots across India

The post Mumbai, Bengaluru, Hyderabad Power India’s Office Market to 33.7 MSF in H1 2025 appeared first on Square Feat India.

In Q2 2024 alone, approximately 13 million square feet of office space was leased in green-certified buildings across the top six cities, marking a significant 24% year-over-year increase and an impressive 82% share of total leasing activity for the quarter. Bengaluru and Mumbai emerged as leaders in this trend, together accounting for over 50% of the green-certified leases in the quarter. Notably, about 60% of these leases were in relatively new developments constructed in the past five years.

Growing Green Certification Among Occupiers

The shift towards green office spaces is driven by an increasing awareness among corporate occupiers of the role that sustainable buildings play in addressing climate change. Prominent green certifications such as LEED, GRIHA, and WELL are becoming more sought after as they offer benefits like lower operational costs, improved indoor air quality, and enhanced employee productivity.

“Over the last few quarters, developers, investors, and occupiers in the office market have increasingly embraced the adoption of sustainable elements in their portfolios. With 13 million square feet of leasing in green-certified buildings in Q2 2024, a significant 82% of occupiers were inclined towards green-certified buildings. This reflects occupiers’ strong commitment to align their sustainability goals with the broader sustainability targets of the country,” said Arpit Mehrotra, Managing Director, Office Services, India at Colliers.

Sector-Specific Trends

Technology and Engineering & Manufacturing firms are at the forefront of this green shift, with about 80% of their leasing activity in green-certified buildings since 2023. Additionally, 62% of flexible workspace providers also prefer green-certified locations. The technology sector alone accounted for 27% of the green-certified leasing, followed closely by Engineering & Manufacturing and BFSI sectors.

City-wise data highlights:

• Bengaluru: 68% of leasing in green-certified buildings, with Engineering & Manufacturing leading.
• Chennai: 79% of leasing in green-certified buildings, predominantly by the Technology sector.
• Delhi NCR: 74% share, with Technology firms driving the trend.
• Hyderabad: 76% share, largely due to Technology firms.
• Mumbai: 72% share, with BFSI sector leading.
• Pune: 71% share, with BFSI sector prominent.

Expansion of Green Office Stock

The green office stock is set to grow substantially. As of June 2024, approximately 67% of Grade A office buildings in the top six cities were green-certified. With nearly 70% of new Grade A office completions in Q2 2024 being green-certified, the trend is expected to continue. Over the next 2-3 years, the green-certified Grade A office stock is projected to exceed 600 million square feet.

“With increased inclination among occupiers for green-certified buildings, several Grade A developers are boosting their sustainable offerings. During Q2 2024, nearly 70% of new supply was green-certified. Developers are also retrofitting older office buildings to meet green standards. About 300-350 million square feet of commercial building stock older than 10 years have the potential for refurbishment, further expanding the green-certified office inventory,” noted Vimal Nadar, Senior Director and Head of Research at Colliers India.

The surge in green office space leasing and development reflects a broader shift towards sustainability in India’s commercial real estate sector, highlighting a significant step towards meeting environmental, social, and governance (ESG) goals.

Also Read: Industrial & warehousing demand remains healthy with about 13 mn sq ft of leasing in H1 2024

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