The report highlights India as the clear leader in the region, accounting for 68% of total office leasing activity across Asia Pacific during the year. Strong demand from occupiers, expansion of global capability centres (GCCs), and steady economic growth have positioned India as the dominant office market in the region.

India, China and Japan Drive APAC Office Demand

According to the Colliers Asia Pacific Office Market Insights – February 2026 report, the majority of office demand in the region came from India, Mainland China, and Japan, which together accounted for over 90% of total leasing activity in 2025.

While the largest economies dominated overall demand, several smaller markets also saw significant growth. Markets such as the Philippines, New Zealand, and Hong Kong recorded multi-fold increases in leasing activity, driven by improving business sentiment and renewed corporate expansion.

Office Supply Also Rises Across Key Markets

The report noted that new office supply across the top 11 Asia Pacific markets increased 19% year-on-year, reaching 9.6 million square metres (103.3 million sq ft) in 2025.

Most of the supply growth was concentrated in India, Mainland China, and Singapore, which together contributed 82% of the total new office completions during the year.

Overall, eight of the eleven major markets recorded an increase in new office supply, indicating strong developer confidence in the region’s commercial real estate sector.

India Accounts for 68% of Leasing and 55% of New Supply

India emerged as the largest driver of office market growth in Asia Pacific, accounting for:

• 68% of total leasing activity across the region
• 55% of the new office supply delivered in 2025

According to Vimal Nadar, National Director and Head of Research at Colliers India, the country’s strong fundamentals continue to attract both occupiers and investors.

“India continues to drive the APAC office market, firmly establishing itself as a dominant demand centre and key location for investments. Backed by steady economic growth, a strong occupier base and expanding GCCs, India’s office market is well positioned to sustain its growth momentum,” Nadar said.

Institutional Investments Surge 21% in 2025

Investor confidence in the office sector also strengthened significantly during the year.

Institutional investments in Asia Pacific’s office segment rose 21% year-on-year to USD 58.6 billion in 2025, reflecting growing interest from global capital in the region’s commercial real estate market.

India recorded one of the strongest increases in office investments, further reinforcing its position as a preferred destination for long-term institutional capital.

Vacancy Levels Expected to Tighten in 2026

Industry experts expect office demand and supply to remain robust in the first half of 2026, supported by continued corporate expansion and a growing preference for high-quality, future-ready office spaces.

According to Arpit Mehrotra, Managing Director – Office Services at Colliers India, the strong leasing momentum seen in the second half of 2025 is likely to continue.

“Office demand across key APAC markets continues to strengthen despite geopolitical frictions. Supported by domestic growth in major economies, controlled inflation and a more accommodative interest rate environment, the region’s fundamentals remain stronger than many global markets,” Mehrotra said.

He added that as vacancy levels decline in prime locations, rentals across key office markets—including India—are expected to move upward in the coming months.

Companies Becoming More Strategic About Office Space

The report also highlights a structural shift in corporate real estate strategies across Asia Pacific.

According to Mike Davis, Managing Director of Occupier Services for Asia Pacific at Colliers, companies are no longer simply expanding office footprints but are recalibrating their workplace strategies.

Instead of taking larger spaces, organisations are focusing on better-located, higher-quality office environments that support hybrid work models and employee experience.

“Businesses are not simply returning to the office; they are recalibrating their portfolios. We are seeing companies make fewer moves, but better ones,” Davis said.

Outlook: India to Remain APAC’s Office Powerhouse

With strong occupier demand, growing global capability centres, and rising institutional investments, India is expected to remain the dominant office market in Asia Pacific in the coming years.

The continued shift toward premium Grade-A office buildings, sustainable workplaces, and strategic corporate expansions is likely to support healthy leasing volumes and rental growth through 2026.

Also Read: India’s office sector can see leasing of 35-38 mn sq ft during 2023

The post India Dominates Asia Pacific Office Market as Regional Leasing Touches 105 Million sq ft in 2025 appeared first on Square Feat India.

The deal strengthens Mindspace REIT’s position across India’s most coveted office destinations—Worli, BKC Annexe, and Kalyani Nagar (Pune)—and represents the REIT’s second major sponsor acquisition.

The Assets Acquired

Mindspace REIT will acquire 100% equity in:

1. Pramaan Properties Pvt Ltd

• Ascent – Worli (Mumbai):
  ~0.45 million sq ft of newly completed premium office space in one of India’s most prestigious micro-markets.
  Occupancy: ~86%
• Kalyani Nagar Office Building (Pune):
  ~0.1 million sq ft of Grade A space
  Occupancy: 100%

2. Sundew Real Estate Pvt Ltd

• The Square Avenue 98 (BKC Annex, Mumbai):
  ~0.2 million sq ft Grade A+ office building
  Occupancy: 100%
  Anchored by leading global banks

Together, the assets comprise ~0.8 million sq ft of leasable area with a combined Gross Asset Value (GAV) of ₹3,106 crore, as per two independent valuations. Mindspace secured the assets at a 6.1% discount.

Portfolio Impact

Post-acquisition, Mindspace REIT’s portfolio will expand from 38.2 msf to ~39 msf, further deepening its presence in prime, front-office CBD markets.

Key performance expectations (Proforma FY26):

• NOI growth: ~9%
• DPU accretion: ~1.7%
• Front-office portfolio value contribution: ~7.9%
• Addition to FY26 NOI: ~₹226 crore
• GAV increase: From ₹41,020 crore to ₹44,126 crore
• LTV ratio: Rises marginally from 24.2% to 24.7%

The assets bring embedded mark-to-market potential, long-term stable rentals, and marquee tenants—including two of the biggest Wall Street names.

Management Commentary

Ramesh Nair, MD & CEO, Mindspace REIT, said:
“Bringing these assets into the Mindspace REIT portfolio is a strategic step in strengthening our presence in Mumbai’s most sought-after CBD office districts. These are high-quality, institutional assets with strong cash flows and global tenants. We continue to invest in great locations, work with great tenants, and create durable value for our unitholders.”

Strengthening a Disciplined Growth Journey

Over the years, Mindspace REIT has expanded through strategic acquisitions such as:

• c. 1.82 msf Commerzone Raidurg
• Full ownership consolidation at Commerzone Porur (Chennai)
• Expansion at Commerzone Yerwada (Pune)
• The 0.81 msf acquisition of The Square, 110 Financial District (Hyderabad)

The current transaction marks another major milestone in its value-accretive, institutional-grade expansion strategy.

Also Read: Mindspace Business Parks REIT delivered a strong Q2 FY26 performance with 25.8% YoY NOI growth

The post Mindspace REIT Acquires ₹2,916 Crore Trophy Office Assets in Mumbai and Pune from K Raheja Corp appeared first on Square Feat India.

Mumbai, November 11, 2025:
Awfis Space Solutions Limited, one of India’s leading flexible workspace providers, reported a 44% year-on-year rise in operating EBITDA for the first half of FY26, driven by expanding demand from enterprises and GCCs.

Operating revenue for H1 FY26 stood at ₹702 crore, up 28% YoY, while PAT rose 49% to ₹26 crore (excluding exceptional items). The company achieved an EBITDA margin of 36.9%, a gain of 430 basis points over the previous year.

In Q2 FY26, Awfis posted ₹367 crore in operating revenue and ₹16 crore in PAT, reflecting consistent growth momentum through the quarter.

Expanding Portfolio and Enterprise Focus

As of September 30, 2025, Awfis managed 247 centers with 1.7 lakh seats across 8.4 million sq. ft., including spaces under fit-out and signed LOIs.

The company added 14,000 new seats in H1 FY26 and 8,000 seats in Q2, marking a year-over-year increase of 35,000 seats. Notably, 100% of new supply was in Grade A assets, with 70% in Grade A+ developments.

Awfis currently operates 26 premium centers — including 21 Gold and 5 Elite centers — catering to large corporates, GCCs, and enterprise clients. During H1 FY26, the company secured 5,000 seats from over nine large corporates and MNCs, with 10 GCCs signing up across its Elite centers.

Strategic Shift Toward Premium, Enterprise-Grade Workspaces

Commenting on the results, Amit Ramani, Chairman and Managing Director, Awfis Space Solutions Limited, said:

“Our operating performance underscores the strength of our execution and the maturity of our enterprise client base. The growing contribution from the 500+ seat cohort, now forming 34% of our portfolio, reflects the stability and stickiness of our large clients.”

He added that Awfis is now moving up the value curve — focusing on premium Grade A buildings and enterprise-driven locations, while continuing expansion in Tier 2 cities where supply grew 28% YoY.

Awfis Transform to Drive Next Growth Phase

Awfis also announced the subsidiarization of Awfis Transform, its design and build vertical, which will now operate as a wholly owned subsidiary. The move aims to provide greater operational flexibility, enabling the unit to pursue opportunities in new sectors such as retail, hospitality, and commercial interiors.

This restructuring is expected to enhance transparency in performance metrics and accelerate diversified growth for the group.

Outlook

With an integrated ecosystem covering flexible workspace operations, allied services, and design-build expertise, Awfis is positioning itself for sustained, profitable growth. The company’s strategy combines premium execution in top metros with measured expansion in emerging markets, aligning with evolving enterprise workspace preferences.

Also Read: Awfis expands its footprint in Kolkata

The post Awfis H1 FY26 Operating EBITDA Jumps 44% YoY; Revenue Up 28% Amid Strong Enterprise Demand appeared first on Square Feat India.

The quarter also saw gross leasing of approximately 0.8 million sq. ft., reflecting sustained demand for high-quality office spaces across Mindspace’s portfolio.

Strong Leasing and High Occupancy

Mindspace REIT maintained a committed occupancy of around 93.8%, which increases to 94.6% on a like-to-like basis, excluding the newly acquired Q-City (now rebranded as The Square 110 Financial District).

The REIT achieved a re-leasing spread of about 28%, indicating robust rental growth, particularly in Hyderabad’s Madhapur micro market. Mindspace also signed its first deal in Madhapur at approximately ₹100 per sq. ft. per month, underscoring the potential for further rental upside.

“With a robust balance sheet, low leverage, and declining cost of debt, we remain well positioned to deploy capital in our development pipeline and capitalize on the strong demand for Grade-A office spaces,” said Ramesh Nair, CEO & MD, Mindspace REIT.

Financial Performance: Revenue, NOI, and Distribution Up

For Q2 FY26, Mindspace REIT’s:

• Revenue from operations stood at ₹778 crore (up 24.8% YoY).
• Net Operating Income (NOI) stood at ₹634 crore (up 25.8% YoY).
• Distribution to unitholders increased by 16.3% YoY to ₹355 crore.
• Distribution per unit (DPU) grew 13.2% YoY to ₹5.83 per unit.

On a half-yearly basis, NOI for H1 FY26 rose by 25% YoY to around ₹1,250 crore. The record date for Q2 distribution is November 8, 2025, and payments will be made on or before November 14, 2025. Since its listing, the REIT has cumulatively distributed about ₹5,950 crore, translating to approximately ₹99.9 per unit.

Portfolio Value and Balance Sheet Strength

As of September 30, 2025, Mindspace REIT’s Gross Asset Value (GAV) rose to ₹41,020 crore, up from ₹36,647 crore in March 2025. The Net Asset Value (NAV) per unit stood at ₹483.7.

The REIT maintained a conservative Loan-to-Value (LTV) ratio of about 24.2%, reflecting strong financial stability. Its cost of debt further reduced by 32 basis points sequentially to 7.52% per annum, aided by refinancing and recent rate cuts.

Mindspace raised ₹1,700 crore through Commercial Papers at an effective rate of 6.12%, and ₹1,150 crore through Non-Convertible Debentures (NCDs) at 7.12%.

Sustainability and Global Recognition

Mindspace REIT continued to earn international recognition for its sustainability initiatives. For the third consecutive year, it achieved a 5-star GRESB rating and was named ‘Global Listed Sector Leader – Office Development Benchmark’.

Its Development Benchmark scored 100/100, ranking 2nd among 18 peers in Asia, while the Standing Investment Benchmark scored 93/100, also ranking 2nd among 20 peers in Asia.

Development Pipeline and Outlook

Mindspace REIT is actively progressing on an under-construction pipeline of approximately 3.7 million sq. ft., positioning it to capture future demand in India’s premium office markets. With low leverage and stable occupancy, the REIT remains optimistic about sustained growth in rentals and portfolio expansion.

The company believes the strong absorption trends across Hyderabad and Navi Mumbai will continue to drive performance in the coming quarters.

Also Read: Data Benchmarking Institutions Launched to Empower Indian REIT Investors

The post Mindspace Business Parks REIT Reports 25.8% YoY NOI Growth in Q2 FY26; Leasing Momentum Remains Strong appeared first on Square Feat India.

Vacancy levels have fallen to their lowest in three years — down from 16.7% to 16.2%, despite a steady stream of new office completions.

Rents Rise, Vacancies Fall

• Average office rent: ₹90 per sq. ft. (up from ₹85 last year)
• Vacancy levels: 16.2% in 9M 2025 (down from 16.7%)
• City with least vacancy: Chennai (8.9%)
• Highest rent growth: Bengaluru (9% year-on-year increase)

The data signals that India’s post-pandemic office recovery is firmly underway, powered by expanding global capability centers (GCCs), coworking spaces, and BFSI demand.

Pune and Bengaluru Dominate Absorption

Net office space absorption across the top 7 cities reached a record 42 million sq. ft. — up 34% from 31 million sq. ft. in the same period last year.

• Pune led the charge with a massive 97% rise in absorption, growing from 3.1 to 6.2 million sq. ft.
• Bengaluru topped in total leasing with 9.95 million sq. ft., followed by Delhi-NCR (8.2 million sq. ft.) and Mumbai Metropolitan Region (6.6 million sq. ft.)
• Kolkata was the only city to see a dip of 19% in leasing activity.

“GCCs alone accounted for 40% of total office leasing in India,” said Anuj Puri, Chairman of ANAROCK Group. “Bengaluru, Pune, and Chennai remain the preferred destinations for such occupiers.”

New Supply Surges — Led by Pune and NCR

Developers responded to the demand with a 15% jump in new office completions — from 34 million sq. ft. in 9M 2024 to 39.2 million sq. ft. this year.

• Pune again topped with a 168% rise in new office completions.
• Delhi-NCR saw 80% growth, followed by Chennai (28%) and Bengaluru (20%).
• In contrast, Hyderabad (-39%) and Mumbai (-41%) saw a slowdown in new completions, as developers focused on leasing existing inventory.

Who’s Leasing All This Space?

The sector-wise split reveals that the office market’s backbone remains strong:

• IT/ITeS sector: 27% of total leasing (slightly lower than last year)
• Coworking spaces: 23% (up from 21%)
• BFSI: 18%

Coworking and hybrid work models have continued to shape demand. Many companies are opting for flexible, green-certified, amenity-rich spaces, which are now a major focus for developers.

What This Means for Businesses

For occupiers, the data indicates rising rents but improving availability of premium Grade A offices with modern infrastructure.
For developers, it’s a sign that the commercial segment is rebounding faster than expected.
For employees and cities, it means more job hubs, revived CBDs, and higher business confidence.

Even with global headwinds, India’s office market is back in growth mode — signaling strong investor faith in the country’s long-term corporate fundamentals.

Also Read: Occupiers across major markets in India willing to pay higher rentals for quality office supply

The post India’s Office Rentals Rise 6% as Companies Rush to Expand – Pune and Bengaluru Lead, Vacancy at 3-Year Low appeared first on Square Feat India.

The rise cements Mumbai’s position as India’s second-fastest growing office rental market, after Kolkata. Despite a drop in leasing volumes, demand for premium Grade A spaces remains strong — indicating that companies are willing to pay a premium to be in key business districts.

Mumbai Office Market Snapshot – Q3 2025

• Average rent growth: +11% YoY
• New office completions: 1.6 mn sq ft (up 94% YoY)
• Leasing volumes: 1.9 mn sq ft transacted (down 27% YoY)
• Ranking: Second only to Kolkata in rental growth

How Mumbai Compares with Other Cities

Year-on-Year Office Rent Growth (Q3 2025):

• Kolkata: +14%
• Mumbai: +11%
• NCR & Hyderabad: +9% each
• Bengaluru: +6%
• Ahmedabad: +5%
• Pune: +4%
• Chennai: +1%

Mumbai is outperforming most major metros, reflecting the city’s enduring commercial magnetism.

Leasing Activity: Mumbai Holds Its Own

While Mumbai’s transaction volumes dipped by 27% YoY, the city remains one of India’s three largest office markets along with Bengaluru and NCR — together accounting for 50% of all leasing activity in the country.

Transaction Volumes (mn sq ft):

• Bengaluru: 4.2 (↓ 21% YoY)
• Hyderabad: 2.9 (↑ 33% YoY)
• Chennai: 2.8 (↑ 9% YoY)
• NCR: 2.7 (↓ 15% YoY)
• Mumbai: 1.9 (↓ 27% YoY)
• Kolkata: 0.5 (↑ 190% YoY)
• Ahmedabad: 0.4 (↓ 13% YoY)

Even with a dip, Mumbai remains a heavyweight in India’s office leasing landscape.

New Supply: Developers Step on the Gas

After several quarters of lag, new office supply in Mumbai jumped by 94% YoY, reaching 1.6 mn sq ft in Q3 2025. This comes as developers attempt to catch up with pent-up demand for Grade A spaces, which has been pushing rents upward.

New Office Completions (mn sq ft):

• Bengaluru: 5.9 (↑ 140%)
• Mumbai: 1.6 (↑ 94%)
• NCR: 1.5 (↑ 42%)
• Chennai: 0.4 (↑ 1709%)
• Hyderabad: 1.4 (↓ 61%)
• Pune: 1.1 (↓ 60%)

Meanwhile, Residential Market Stays Hot

Mumbai isn’t just leading in commercial real estate. It also topped India’s home sales charts in Q3 2025:

• 24,706 homes sold, the highest among all cities
• Home prices rose 7% YoY, driven by demand in premium segments (₹1 crore+)
• New launches dipped 19% YoY to 19,145 units as developers focused on delivery rather than aggressive expansion

What It Means for Businesses and Workers

For companies, these rising rents could significantly increase operational costs, particularly for startups and mid-sized firms in premium locations. Many may turn to emerging suburban micro-markets or co-working solutions to balance cost and quality.

For professionals, working in Mumbai could become more expensive indirectly through higher corporate overheads, commuting costs, and housing expenses near commercial hubs.

Bigger Picture

Mumbai’s real estate market is at an inflection point — strong residential demand, surging commercial rents, and accelerating new supply all point to a maturing, resilient urban economy. The city continues to attract occupiers and investors alike, even as competition among metros intensifies.

Also Read: Maharashtra’s New GCC Push Set to Energise Office Leasing Beyond Mumbai & Pune

The post 📰 Working in Mumbai Just Got Costlier: Office Rents Jump 11% appeared first on Square Feat India.

SBDs Lead Mumbai’s Commercial Shift

MMR’s office geography is evolving rapidly. Secondary Business Districts (SBDs) such as BKC, Andheri, Goregaon, and Powai now account for 58% of total stock, while the once-dominant Central Business Districts (CBDs) like Nariman Point and Fort now hold just 15%. Peripheral Business Districts (PBDs) including Thane, Navi Mumbai, and Belapur contribute 27%, signaling rising interest in infrastructure-rich, cost-efficient corridors.

Grade Composition: A Mix of Legacy and Premium Assets

Mumbai’s office portfolio reflects its early commercial start and modern upgrades:

• 40% Grade A stock
• 51% Grade B stock

This diverse mix shows potential for retrofitting older buildings to align with modern occupier expectations, particularly around ESG compliance and tech-readiness.

Rentals, Supply, and Vacancy Trends

• Average rent: INR 129.4/sq ft/month in H1 2025
• New completions: Down 48% YoY to just 2.2 Mn sq. ft.
• Vacancy levels: Compressed to 17.4%, the lowest in over a decade

The supply-demand imbalance and occupiers’ readiness to pay premiums for well-located, ESG-compliant offices are fueling rental growth.

Flex Space and GCCs Drive Leasing

• Flex space share in leasing: Jumped to 39% in H1 2025, from just 10% YoY
• GCCs: Now account for 11% of absorption, up from 5%
• India-facing businesses: Share declined from 80% to 48%

This shift reflects occupier focus on agility, hybrid models, and smart, sustainable workplaces. The growth in Global Capability Centres also underscores Mumbai’s rise as a preferred offshore delivery and tech innovation hub.

Infrastructure Push Fuels Future Growth

Projects like Mumbai Metro Line 3, Atal Setu (MTHL), and the upcoming Navi Mumbai International Airport are expected to unlock demand in emerging PBDs, while lifting rental prospects in SBDs and Central Mumbai.

India’s Billion Sq Ft Office Milestone: Mumbai at the Helm

With India’s total office stock crossing the 1 billion sq. ft. mark, Mumbai contributes a significant 17% share. Backed by its deep talent base and sectoral diversity (BFSI, consulting, media, tech), Mumbai is poised to lead India’s next wave of institutional office growth.

Also Read: SUGAR Cosmetics Acquires 14,000 Sq. Ft. Office Space in Mumbai

The post Mumbai Office Market Hits 169 Mn Sq Ft: Over 50% Stock in Grade B Category, Flex Space Demand Soars appeared first on Square Feat India.

As India’s commercial office market rides a wave of record-breaking leasing, Mumbai Metropolitan Region (MMR) has carved out a dominant position as the country’s leading hub for BFSI Global Capability Centers (GCCs), according to a new report by JLL.

While Bengaluru retains the lion’s share (40%) of GCC leasing since 2022, Mumbai has clearly emerged as the financial services anchor, thanks to its legacy as India’s banking capital and its mature commercial infrastructure.

Mumbai’s GCC Snapshot

“Mumbai is the undisputed leader when it comes to BFSI-focused GCCs,”
said Rahul Arora, Senior MD, JLL India.
“The city’s historical banking and finance legacy, coupled with a maturing digital ecosystem, has made it the go-to location for global financial institutions looking to scale their India operations.”

Mumbai: Banking on BFSI GCCs

As per JLL’s findings:

• Mumbai leads in BFSI GCC leasing volume across India.
• Companies prefer the city for its access to financial regulators, proximity to HQs, and abundance of finance professionals.
• Demand is especially strong from multinational banks, insurance companies, asset management firms, and digital finance players setting up innovation centers.

Core Corridors Fueling Growth

Across these corridors, JLL reports that 65–98% of GCC activity is concentrated in high-grade office parks offering ESG-compliant, tech-enabled campuses with excellent infrastructure.

BFSI & Beyond: Mumbai’s Expanding Role

Although BFSI is the core driver, Mumbai is also witnessing:

• Gradual growth in consulting and legal services GCCs
• Fintech R&D centers targeting digital banking innovations
• Uptick in shared services hubs supporting global operations

This evolution highlights Mumbai’s growing role as a multi-sectoral innovation hub, not just a financial capital.

Market Comment

“The maturity of MMR’s office ecosystem, policy support for financial innovation, and talent availability give it a long-term edge,”
noted Dr. Samantak Das, Chief Economist & Head of Research, JLL India.
“As BFSI firms modernize their global operations, MMR will remain a core GCC destination, especially for high-value financial and compliance services.”

India-Wide GCC Momentum – MMR Stays Ahead

• India GCC leasing (2022–H1 2025): ~230 million sq. ft.
• GCC share in total leasing: 35.4%
• BFSI + ER&D (2024–H1 2025): 51.5% of all GCC leasing
• Mumbai BFSI GCCs: Among highest leasing share, surpassing Chennai and Hyderabad in this segment

Outlook for MMR

Also Read: MMR Saw 16,510 Launches in Q3 of 2021, 140% Increase from Q2

The post Mumbai Emerges as India’s BFSI GCC Powerhouse Amid Record Leasing Surge appeared first on Square Feat India.

Key Highlights

What’s Driving the Surge?

Global Capability Centres (GCCs)

• Contributing 30–40% to annual net leasing.
• Benefiting from India’s skilled talent pool and cost competitiveness.

BFSI Sector

• Expected to see double-digit net leasing growth.
• Driven by robust credit expansion, rising AUMs, and hiring.

Flex Operators

• Expanding agile, hybrid, and cost-effective workspace models.
• Targeting companies looking for flexible, low-commitment real estate.

“India’s commercial office market is entering a steady, growth-driven phase after its pandemic recovery,” says Gautam Shahi, Director, CRISIL Ratings.

Sectoral Trends: Winners & Laggards

• BFSI and Flex: Driving major growth in net leasing.
• IT/ITeS: Moderate growth of 5–6%, led mainly by GCCs; domestic IT demand remains subdued.
• Pune Micro-market: May face oversupply-driven vacancy uptick.
• Southern Cities (Bengaluru, Hyderabad, Chennai): Steady vacancy despite high supply.
• NCR & MMR: Vacancy to fall by 200–250 bps due to strong demand.

CRISIL’s Take

“Declining vacancy levels, contracted rent escalations, and recent rate cuts by the RBI will boost cash flows. Developers maintaining prudent leverage will see stable credit profiles,” says Snehil Shukla, Associate Director, CRISIL Ratings.

Expert Comment

Industry Viewpoint
“Net leasing breaching 50 msf is a major confidence boost for the commercial real estate sector. GCCs continue to anchor demand, and flex players are redefining how occupiers approach office space. However, supply needs to be carefully managed to prevent micro-market imbalances.”
— Ravi Mehra, MD, South India Commercial Realty Forum

Monitorables Ahead

• Global economic headwinds or geopolitical tensions impacting GCC leasing.
• Over-leveraging by smaller developers.
• Unchecked supply in slower micro-markets (e.g., Pune).

Outlook

With steady demand, improving cash flows, and stable leverage, the sector is set for credit profile improvement and long-term sustainability—a positive sign for investors, lenders, and developers alike.

Also Read: Residential Sales to Maintain Steady 10–12% Growth Path: CRISIL Ratings

The post Net Office Leasing in India to Cross 50 Million sq ft in FY26 appeared first on Square Feat India.

Macro View (Top 7 Cities vs High‑Activity Markets)

Source: Colliers Research

Top 15 High‑Activity Micro Markets

Green micro markets indicate sub‑dollar rentals (~ INR 90/sf/mo).

Why These Markets Matter

• Demand & Supply Scale: Each micro market averages ≥ 1 msf annual demand and supply; collectively forecast to drive 80%+ of India’s future office activity.
• REIT Potential: With 488 msf REIT-worthy nationally, 56% lies within top 10 micro markets, and 72% of their Grade A stock is ready for REIT listings.
• Financial Hubs: Flexible workspace (flex) uptake in these areas soared from 1.3 msf (2020) to 7.3 msf (2024) at a CAGR of 54%; 73% of GCC leasing (~70 msf) also centered here.
• Rental & Vacancy Benefits: Premium rental zones in Mumbai and Delhi NCR enjoy sub-10% vacancies—well below ~16% national average.
• Sustainability Edge: Green-certified offices are gaining preference, providing higher occupancy and yield.

Expert Opinions

“Annual demand and supply in each of these high-activity micro markets is likely to exceed one million sq ft…”
— Arpit Mehrotra, MD, Office Services, Colliers India

“These zones will lean toward landlord-favorable terms and attract premium and green-certified developments.”
— Vimal Nadar, National Director & Head of Research, Colliers India

Mini Insights Box

• Micro Markets Count: 15 across 7 cities
• Rent Types: ~60% are near or sub‑dollar
• Flex Space Demand: 59% of national uptake in top 10 zones
• GCC Focus: 73% of leasing in top 10 markets
• REIT-Ready Inventory: 72% readiness in top 10 micro markets

Outlook

India’s office landscape is reshaping around these high-activity micro markets, which offer scale, value, and investor appeal. With sustained growth, REIT upside, flex trends, and green adoption, these zones are set to define the future of India’s commercial real estate.

Also Read: Indian office real estate performs better in Asia Pacific.

The post India’s Office Boom Narrows to 15 Hotspots appeared first on Square Feat India.