Mumbai, Bengaluru, Hyderabad Power India’s Office Market to 33.7 MSF in H1 2025

SquareFeatIndia — Thu, 26 Jun 2025 09:24:10 +0000

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.

Also Read: 17 emerging real estate hotspots across India

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