India’s commercial real estate market continues to lean heavily on the technology sector, which drove nearly 40% of overall office leasing in the first half of 2025, according to Colliers India. The sector accounted for over 10 million sq. ft. of Grade A office space uptake across the top seven cities, highlighting the sustained expansion of global capability centres (GCCs) and domestic IT giants.
Large-Sized Deals Dominate Market
Colliers noted that large-sized deals (≥100,000 sq. ft.) remained the backbone of the office market, contributing 51% of total leasing or 17.2 million sq. ft. in H1 2025. Of this, tech occupiers drove 43% of the large deals, followed by BFSI at 28%. The steady momentum signals confidence among technology firms in India’s talent pool and long-term market potential.
“Since 2020, tech occupiers have leased nearly 85 million sq. ft. of conventional office space, accounting for the bulk of large transactions,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India. “Despite global uncertainties, we expect technology occupiers to maintain this momentum through 2025, largely fuelled by GCC expansions.”
Bengaluru & Hyderabad Lead Demand
Bengaluru and Hyderabad continue to dominate, together accounting for about 50% of India’s total tech leasing. Bengaluru, supported by its deep IT ecosystem and skilled workforce, remains a top-five global tech hub. Hyderabad has gained momentum through competitive costs, supportive policies, and high-quality office developments. Secondary hubs like Pune, Chennai, and Delhi-NCR also contributed significantly.
Flex Spaces on the Rise
The report also highlighted that tech firms are adopting hybrid work strategies, driving 40–50% of flex space demand in major IT hubs. Flexible workspaces in Bengaluru, Hyderabad, and Pune are particularly witnessing strong traction, helping firms optimize costs while maintaining scalability.
Outlook
With AI adoption, cloud computing, and cybersecurity reshaping global operations, India’s IT industry is entering a structural growth phase. According to NASSCOM, GCCs in India are projected to rise from 1,800 today to 2,400 by 2030, generating revenues of over USD 100 billion. This transformation is expected to keep the technology sector at the centre of India’s office real estate market for years to come.
Also Read: Office Leasing in Q1 2025 Rises 15% YoY to 15.9 Million Square Feet Across Top 7 Cities
