According to Vestian Research, GCCs emerged as the single largest growth engine for India’s office sector, accounting for 45% of total pan-India office absorption in 2025, up from 41% a year earlier. In absolute terms, GCC-led leasing touched 34.9 million sq ft, marking a robust 20% year-on-year increase.

This surge helped push total office absorption to a record 78.2 million sq ft, the highest ever recorded in a single calendar year. Overall absorption grew 11% year-on-year, underscoring the resilience of India’s commercial real estate market even as global macroeconomic and geopolitical challenges persisted.

GCC Momentum Lifts Overall Market Performance

Strong demand from GCCs—supported by a favourable policy environment, India’s deep talent pool, and continued restrictions around the H1-B visa—played a pivotal role in sustaining leasing activity across major cities. Developers responded swiftly, accelerating construction to meet demand.

As a result, new office completions rose 8% year-on-year to 55.5 million sq ft, also an all-time annual high. Importantly, demand continued to outpace supply.

Vacancy Rates Decline Sharply

With absorption significantly exceeding new supply, occupancy levels improved across the country. The pan-India vacancy rate fell by 310 basis points, declining from 13.9% in 2024 to 10.8% in 2025.

Vacancy corrections were visible across most major office markets, ranging from marginal improvements of 0.1% to sharp declines of nearly 6%. Pune was the sole exception, where vacancy levels increased by 4.6% due to substantial supply additions of nearly 12 million sq ft during the year.

City-wise Performance: Bengaluru Leads, NCR Surges

Bengaluru retained its position as India’s largest office market, recording 20.3 million sq ft of absorption, a 15% annual increase. Mumbai followed closely with 14.8 million sq ft, registering a strong 17% growth, despite a sharp drop in new completions.

One of the standout stories of 2025 was NCR, where office absorption jumped 34% year-on-year to 11.9 million sq ft. Even more striking was the surge in GCC activity—GCC absorption in NCR rose from just 1.6 million sq ft in 2024 to 5.3 million sq ft in 2025, increasing their share of city-wide leasing from 18% to 45%.

Sectoral Diversification Adds Depth

While the IT–ITeS sector continued to dominate, accounting for 38% of total office absorption, demand became increasingly diversified. BFSI and flex space operators each contributed 14%, reflecting broader occupier participation.

Notably, GCCs accounted for more than half of IT–ITeS leasing activity, contributing nearly 60% of the total area transacted by the sector in value terms. Beyond technology, growing demand from BFSI, healthcare, engineering, R&D, and flex operators added resilience to the market.

Outlook: GCC Share to Cross 50% by 2026

Office absorption in India has followed a steady upward trajectory—rising from 61 million sq ft in 2023, to 70 million sq ft in 2024, and nearly 80 million sq ft in 2025. At the current pace, Vestian expects absorption to reach 85–90 million sq ft by 2026.

Crucially, GCCs are expected to play an even bigger role. Their share of total absorption, which rose to 45% in 2025, is projected to exceed 50% by 2026, cementing India’s position as a global hub for capability centres.

As Vestian notes, sustained GCC demand, robust economic fundamentals, and a growing preference for Grade A and green-certified office spaces are likely to keep leasing momentum strong, even amid global uncertainty.

Also Read: Mumbai’s Office Market Shines as India’s Workspaces Expand Beyond Traditional Hubs

The post GCCs Power India’s Office Market to an All-Time High in 2025 Despite Global Headwinds appeared first on Square Feat India.

The property sold is located in Balaji IT Park (DC-10 Building), Chandivali, and has a built-up area of approximately 30,195 sq m (~3,25,016 sq ft). This deal adds to a string of high-value real estate transactions involving the Kapoor family in Mumbai’s property market.

A Strategic Sale in a Growing Micro-Market

Chandivali has emerged as a fast-growing residential and commercial micro-market in central Mumbai, benefiting from strategic urban connectivity and robust infrastructure development. The area is situated close to key employment and business hubs such as Powai, Andheri East, and Saki Naka, and offers access to major transport corridors including the Jogeshwari–Vikhroli Link Road (JVLR), LBS Marg, Eastern Express Highway, and multiple Mumbai Metro lines. Improved road and metro connectivity, coupled with proximity to Chhatrapati Shivaji Maharaj International Airport, has helped bolster both commercial leasing and investment demand in the locality.

Chandivali’s appeal among tenants and investors is further enhanced by its nearness to Powai’s IT and tech parks, SEEPZ, MIDC, BKC, and Lower Parel, creating a steady pipeline of office and support-services demand in the micro-market.

Details of the ₹559.25 Crore Transaction

According to the IGR property registration documents reviewed by Square Yards, the Balaji IT Park property was sold for ₹559.25 crore. The recorded built-up area spans roughly 30,195 sq m (~3,25,016 sq ft), an indication of substantial commercial real estate scale. The property was sold by the family-owned firms headed by Tusshar and Jitendra Kapoor, marking another major real estate exit for the family in recent years.

The deal underscores continued investor appetite for established commercial assets in emerging business micro-markets around Mumbai, particularly where existing income-yielding properties can be repositioned or redeveloped to align with occupier demand.

Earlier ₹855 Crore Deal Adds Context

The ₹559.25 crore transaction follows another high-value real estate monetisation by the Kapoor family in 2025, which had drawn significant attention in the property market.

In May 2025, Pantheon Buildcon and Tushar Infra sold a large land parcel within the Balaji IT Park campus in Andheri — measuring approximately 2.39 acres (about 9,665 sq m) — for ₹855 crore to NTT Global Data Centres & Cloud Infrastructure India Private Limited. Importantly, this transaction involved a substantial portion of land within the campus, and not the entirety of Balaji IT Park.

The Andheri deal was widely seen as a strategic acquisition by NTT to expand its data centre footprint in Mumbai, reflecting rising demand for digital infrastructure and enterprise-grade assets.

A Pattern of Strategic Asset Monetisation

Taken together, the Andheri land sale in 2025 and the Chandivali office sale in early 2026 indicate a clear strategy of asset monetisation by the Kapoor family’s real estate entities. Rather than fragmented disposals, the transactions involve large, institution-grade assets, aligning with current market appetite for commercial real estate that offers scale and long-term redevelopment or leasing potential.

Industry observers note that Mumbai continues to remain one of India’s most liquid commercial real estate markets, where high-quality assets can attract significant capital even amid broader economic recalibration.

Bollywood Capital Meets Institutional Real Estate

Veteran actor Jitendra Kapoor, a towering figure in Hindi cinema and the founder of Balaji Telefilms, has long maintained diversified business interests beyond entertainment. His son Tusshar Kapoor, apart from his acting career, has also been active through structured real estate entities.

Their recent transactions underscore a broader trend where legacy asset owners — including celebrity families — are increasingly unlocking value from commercial real estate, as institutional buyers deepen their presence in Mumbai’s office and infrastructure-linked property segments.

Also Read: Jeetendra Kapoor Family Firms Sell Prime Andheri Land for Rs 855 Crore to NTT Global Data Centers

The post 2026’s First Multi-Billion Deal: Tusshar & Jitendra Kapoor Sell Mumbai Property for ₹559.25 Crore appeared first on Square Feat India.

Despite global economic uncertainties and moderated supply additions, Mumbai’s real estate sector demonstrated resilience, underpinned by steady end-user demand, disciplined developer activity, and growing occupier confidence—particularly from Global Capability Centres (GCCs).

Office Market: Leasing at 9.8 mn sq ft, Second Best in Over 10 Years

Mumbai’s office market closed 2025 with 9.8 million sq ft of total leasing, marking the second-highest annual leasing volume in more than a decade, even as volumes declined marginally by 5% year-on-year. Leasing activity in H2 2025 stood at 4.3 million sq ft, supported largely by large-format transactions in scalable suburban micro-markets.

New office completions during the year fell by 12% YoY to 5.1 million sq ft, helping keep vacancy levels contained at 18.3%. The slowdown in fresh supply, coupled with quality-driven demand, contributed to firm rental growth across key business districts.

Average transacted office rents in Mumbai rose 6% YoY to INR 125 per sq ft per month. Core business districts such as BKC and Worli continued to command premium rents in the range of INR 350–600 per sq ft per month, while suburban locations emerged as cost-effective alternatives for occupiers seeking scale.

GCCs Emerge as the Primary Growth Engine

A defining shift in 2025 was the sharp rise in Global Capability Centres (GCCs) as a key occupier segment. GCCs accounted for 27% of total leasing in H2 2025, nearly tripling from 9% a year earlier. This growth was driven primarily by BFSI, technology, and engineering firms expanding analytics, product development, and shared services operations in Mumbai.

India-facing occupiers remained the largest segment with a 40% share, though significantly lower than the 72% share recorded in H2 2024, indicating increasing diversification of demand. Third-party IT and ITeS firms also expanded their footprint, accounting for 20% of leasing, particularly in cost-sensitive suburban hubs.

Large transactions were concentrated in SBD West and PBD, which together contributed over 60% of total leasing, led by Andheri East, Goregaon, Airoli, and Thane.

Commenting on the trend, Gulam Zia, International Partner and Senior Executive Director, Knight Frank India, said Mumbai’s deep talent pool and improving infrastructure continue to make it a preferred destination for global firms setting up high-value operations.

Residential Market: Stable Growth Despite Higher Prices

Mumbai also retained its status as India’s largest residential market, registering 97,188 housing unit sales in 2025, a 1% YoY increase despite a higher base. The second half of the year was particularly encouraging, with H2 2025 sales rising 3% YoY to 50,153 units.

Average residential prices increased 7% YoY to INR 8,856 per sq ft, reflecting sustained demand and limited speculative supply. Developers exercised caution, reducing annual housing launches by 10% to 87,114 units, aligning supply with absorption levels.

This disciplined approach led to a 6% reduction in unsold inventory, which stood at 155,604 units by the end of 2025—signaling improved market health.

Shift Towards Higher Ticket-Size Homes

A notable trend during H2 2025 was the declining share of affordable housing (homes priced below INR 5 million). The segment’s contribution to sales fell from 42% in H2 2024 to 37% in H2 2025.

In contrast, demand strengthened in higher ticket-size categories, especially the INR 20–50 million segment, which emerged as the market’s sweet spot with a healthy Quarters-to-Sell (QTS) ratio of 3.9. Sales in the INR 50–100 million segment also gained traction, reflecting growing buyer confidence in premium and lifestyle-oriented housing.

Infrastructure Boosts Peripheral Demand

The Peripheral Central Suburbs remained Mumbai’s strongest residential demand driver, accounting for 28% of total sales. Demand in these locations was further supported by the operationalisation of major infrastructure projects such as the fully underground Metro Line 3 and the Mumbai Trans Harbour Link (Atal Setu), significantly improving connectivity and commute efficiency.

According to Knight Frank, improved metro access and infrastructure-led development are enhancing the value proposition of peripheral locations, making them increasingly attractive to end-users seeking better affordability without compromising connectivity.

Outlook: Consolidation with Long-Term Stability

Mumbai’s real estate market in 2025 reflected a phase of healthy consolidation, marked by balanced supply-demand dynamics, price appreciation driven by genuine demand, and a structural shift toward higher-quality office and residential assets.

With GCC-led office demand, infrastructure-backed residential growth, and disciplined developer strategies, Mumbai is well-positioned to maintain its leadership across both commercial and housing segments in the coming years.

Also Read: Metro Line 3: A Game-Changer for Mumbai’s Real Estate Landscape

The post Mumbai Solidifies Position as India’s Largest Residential Market in 2025; Office Leasing Hits Second-Highest Level in a Decade 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.

Knowledge Realty Trust (NSE: KRT / BSE: 544481) has reported a strong operational and financial performance for the quarter and half year ended September 30, 2025 — its first results after listing on the stock exchanges in August.

Leasing and Occupancy Trends

During the first half of FY26, the REIT achieved gross leasing of 1.8 million sq. ft., including 1.2 million sq. ft. of new leases and 0.6 million sq. ft. of renewals, at an average spread of 29%.

Portfolio occupancy increased 340 basis points year-on-year to 92%, supported by robust demand in its key markets — Hyderabad (99%), Mumbai (88%), and Bengaluru (88%). Global Capability Centres (GCCs) and domestic firms accounted for nearly 70% of total leasing activity.

Rental escalations were achieved on over 90% of leases, contributing to steady embedded growth across the portfolio.

Financial Performance

Net Operating Income (NOI) rose 20% year-on-year to ₹19,544 million for H1 FY26, with NOI margins at 89%, among the highest in the sector.
Revenue for Q2 FY26 stood at ₹11,238 million, while NOI for the quarter was ₹9,881 million.

The REIT raised ₹16,000 million through AAA-rated listed Non-Convertible Debentures (NCDs) at a 7.2% coupon, and achieved an overall reduction in interest cost to 7.4%, representing 120 basis points in savings.
Leverage remains conservative, with a loan-to-value (LTV) ratio of 18%.

Distribution and Guidance

The Board has declared the first post-listing distribution of ₹6,900 million, translating to ₹1.56 per unit for unitholders.

Shirish Godbole, CEO of Knowledge Realty Trust, said the REIT’s first results after listing reflect “strong leasing momentum and healthy operational metrics.” He added that the focus remains on delivering “sustainable growth and long-term value” to investors.

Quaiser Parvez, COO, noted that occupancy gains and consistent rental escalations highlight the portfolio’s “resilience and demand visibility across core markets.”

IPO and Capital Structure

The REIT’s IPO in August 2025 was subscribed 12 times, with strong participation from domestic insurance and pension funds.
The issue raised ₹62 billion (₹14 billion pre-IPO and ₹48 billion through the IPO), which was primarily used to repay ₹60 billion of debt, reducing LTV from 31% to 18%.

Investor Call and Materials

Knowledge Realty Trust has released its Q2 FY26 earnings presentation and related materials on its Investor Relations website www.knowledgerealtytrust.com.
A conference call with investors will be held on Monday, November 10, 2025, at 4:00 PM IST, and a replay will be available online.

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

The post Knowledge Realty Trust Reports 20% Rise in NOI, Declares ₹6,900 Million Distribution in Q2 FY26 appeared first on Square Feat India.

Below we unpack the report’s findings, explain the single biggest driver behind the surge, and give practical takeaways for tenants, landlords and small business owners.

The single reason behind the rise: shortage of quality space meets renewed in-office demand

The IIMB–CRE Matrix index highlights several local spikes, but they all point to the same structural pressure:

• Many companies (tech, finance, global capability centres) are returning to hybrid models that still require high-quality, well-located offices.
• New Grade-A supply is limited in the short term — approvals, construction and delivery lag real demand.
• That mismatch — steady or growing demand + constrained supply of premium product — is the primary force pushing effective rents higher.

In short: it’s not just a cyclical bounce — it’s structural scarcity of the kind of spaces companies now prefer.

Key market takeaways (in plain language)

• Mumbai: strongest quarterly momentum. Its Central Business District remains the top pick for finance and large HQs; scarcity in CBD stock is keeping rents firm.
• Delhi (city): biggest annual jump. High demand and few new Grade-A towers push tenants to pay premiums for the right address.
• Gurugram: sustained corporate leasing (tech & consulting) is pulling up rents — especially in established micro-markets.
• Navi Mumbai & Whitefield: growing as alternatives — tenants who can’t get space in core CBDs are moving to these markets, supporting solid medium-term rent growth.
• Peripheral suburbs (Chennai north, Whitefield, Navi Mumbai): seeing fastest short-term rises as occupiers hunt value and logistics advantage.

What this means for different players

For startups and small firms

• Reality check: Premium central offices are becoming costlier. Budget for higher effective rents or accept peripheral locations.
• Action: Negotiate flexible lease terms (start small with an expandable footprint, seek shorter lock-ins, or demand rent concessions tied to service levels). Consider co-working or managed office options if cash flow is tight.

For scale-ups and mid-sized companies

• Reality check: Quality space is essential to hiring and retention — paying a premium may be justified if it improves productivity and recruiting.
• Action: Lock in medium-term deals now if you find strategic locations; weigh fit-out and HR cost savings from better office design against higher rent.

For large corporates & REITs

• Reality check: Demand for well-specified stock remains robust; rental growth supports valuation upside.
• Action: Accelerate asset upgrades, consider pre-leasing forward stock where possible, and price new developments factoring in tenant willingness to pay for plug-and-play Grade-A space.

For landlords and developers

• Reality check: There’s pricing power for ready, amenity-rich product.
• Action: Prioritize delivering Grade-A-ready units, improve ESG and climate-resilience features (buyers and tenants value these), and offer flexible lease structures to capture tenants who need certainty.

Practical checklist for someone about to rent an office

• Demand the effective rent (not just headline). Ask for the lease economics: rent-free months, parking, escalation, fit-out allowances.
• Get clarity on delivery timelines and handover standards if taking newly completed space.
• Negotiate flexible expansion options or break clauses to avoid being stuck at high rents if conditions change.
• Consider secondary locations near transport hubs (Navi Mumbai, Whitefield, Chennai north) for lower cost per seat but good access.
• Factor in employee commute and retention — cheaper remote locations may cost more in attrition.

Bottom line — what it means to you (buyer, tenant, or investor)

• If you’re a tenant: expect higher real costs for Grade-A offices; negotiate smart, or shift to emerging micro-markets.
• If you’re an investor or landlord: rents are rising because quality supply is scarce — this supports rental growth and long-term yields, but investor focus must be on quality product and sustainability.
• If you’re an entrepreneur or startup founder: prioritize a pragmatic location strategy — balance cost savings with talent access and brand presence.

Final thought

This rental upswing isn’t a short-lived blip. It’s a structural symptom — better offices are scarce and companies value them more than before. For businesses, the smart move is to plan ahead, read the lease fine print, and choose locations aligned with both budgets and long-term talent strategy.

Also Read: 1% Greener Office = 3% More Thriving Employees

The post Grade-A Shortage Is Pushing Rents Up — Why Mumbai, Delhi & Gurugram Are Squeezing Businesses appeared first on Square Feat India.

The property registration documents for the deal, accessed by SquareFeatIndia, show that the transaction was registered on July 9, 2025.

Details of the Latest Purchase

The three offices are located on the first floor of the Boomerang building in Andheri East’s Chandivali area. Together, they span 13,546 sq ft carpet area.

The deal attracted a stamp duty of ₹1.86 crore and registration fees of ₹30,000. The sellers in this transaction were Manish Krishangopal Bazari, Shalini Manish Bazari, and Bazspace Pvt. Ltd.

Earlier Acquisition in the Same Building

This is not the Roshan family’s first investment in Boomerang. Property documents reveal that in September 2024, the same company purchased five office units on the fifth floor of the building for ₹37.75 crore.

Those offices, with a combined 17,389 sq ft carpet area, were bought on September 5, 2024, with ₹2.26 crore paid in stamp duty and ₹30,000 in registration fees.

Other Real Estate Moves by the Roshan Family

In addition to their commercial property buys, Hrithik Roshan and Rakesh Roshan made headlines last year for selling three residential apartments in Andheri for a total of ₹6.75 crore.

Also Read: Hrithik Roshan’s rent for this Juhu flat will shock you

The post Hrithik Buys Offices in Chandivali for ₹31 Cr 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.

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.

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.