Indian office space segment leased over 71.5 mn sq ft of space in 2025: Report
The Indian office market segment leased over 71.5 million square feet (msf) for the year, a 6% increase compared to the previous year, driven by occupier confidence and the expanding footprint of global capability centres (GCCs), according to a report by Colliers India.
Bengaluru led the leasing with 22.1 million sq ft of leasing, accounting for nearly one-third of the total demand, while Delhi NCR, Hyderabad, Chennai, and Mumbai each contributed around 10 million sq ft or a 13–16% share, it said.
“The Q4 quarter witnessed an all-time high leasing activity of 20.6 million sq ft, representing a 20% increase over the previous quarter. In fact, Bengaluru saw its highest-ever quarterly leasing of 8.1 million sq ft, followed by 4.2 million sq ft of Grade A space uptake in Delhi NCR,” the report said. Together, these two markets accounted for nearly 60% of the total leasing activity during Q4 2025, highlighting large deal closures and occupier expansion in these cities, it said.
“India’s office market continues to scale new highs every year. Crossing 70 million sq ft in 2025, with an all-time high uptake in Q4, reaffirms sustained occupier confidence,” said Arpit Mehrotra, Managing Director, Office Services, India, Colliers. He added that demand from GCCs, technology and BFSI firms, along with a clear flight-to-quality, would keep the outlook positive in 2026.
Also Read: India’s flex office space segment likely to touch $9–10 billion by 2028, driven by GCC demand: Report
Technology, flex spaces dominate demand
Colliers said that technology firms remained the largest demand driver, accounting for about 37% of conventional office space uptake in 2025. Of the 58.5 million sq ft of conventional leasing during the year, tech companies alone took nearly 22 million sq ft, marking a strong 32% annual growth.
Demand, however, stayed diversified, with BFSI, engineering and manufacturing, and consulting firms together leasing around 25 million sq ft, or over 40% of conventional space, highlighting occupiers’ growing preference for premium assets.
Flex space continued its upward trajectory, with operators leasing 13 million square feet of Grade A space in 2025, accounting for approximately 18% of total office demand. Bengaluru and Delhi NCR led flex absorption, while Pune and Chennai also saw more than 20% of their annual leasing driven by flexible workspace operators, the report said.
“Technology firms continued to dominate both conventional and flex spaces in the last quarter, but we are also seeing strong diversification from BFSI and manufacturing sectors,” said Vimal Nadar, National Director and Head of Research, Colliers India. He noted that flex operators could contribute nearly one-fifth of office demand in 2026 and beyond, including in Tier II cities.
Supply steady, vacancies ease
New office supply across the top seven cities stood at 56.5 million square feet in 2025, up 5% year-over-year. Bengaluru, Hyderabad and Pune each added over 10 million sq ft, together accounting for nearly 70% of total completions, the report said.
In Q4, supply moderated to 15.1 million sq ft, down 6% from the same period a year ago, with most cities experiencing a slowdown in new completions. As demand outpaced supply, overall vacancy levels dropped by 49 basis points, while average rentals firmed up by as much as 15% year on year across major markets.
Also Read: India’s office space absorption up 34% to 42 mn sq ft; Bengaluru leads with 9.95 mn sq ft
GCCs fuel long-term momentum
“GCC leasing has grown significantly over the past few years, with 2025 alone witnessing close to 30 million sq ft of Grade A space uptake,” the report said.
Colliers noted that India’s GCCs are increasingly focused on advanced functions such as AI, analytics, product development and cloud computing.
With strong talent availability, policy support and cost advantages, GCC-led demand is expected to remain a key growth engine for India’s office market over the coming years.
