According to real estate consultancy firm Colliers, India’s office space leasing market witnessed a strong 15% growth in the first quarter of 2025, with a total of 159 lakh square feet leased across seven major cities. The surge is driven by increased demand from domestic and foreign companies, signalling a positive outlook for commercial real estate.

Bengaluru, India’s leading office market, saw leasing activity climb 13% year-over-year to 45 lakh square feet. Chennai recorded the highest growth at 93%, reaching 29 lakh square feet. Delhi-NCR followed with a 32% increase to 33 lakh square feet, while Mumbai saw a 16% rise to 22 lakh square feet. Pune also posted significant gains, leasing up 50% to 12 lakh square feet. However, Hyderabad and Kolkata lagged, with leasing activity dropping 41% and 50%, respectively.

“Key markets are seeing strong Grade A space uptake, driven by corporate expansions, rising investments in commercial real estate, and promising domestic growth prospects,” said Arpit Mehrotra, Managing Director, Office Services, India, Colliers. He expects leasing demand to remain robust throughout 2025, led by the expansion of technology firms, BFSI companies, and the engineering and manufacturing sectors.

A significant portion of the leased space—137 lakh square feet—was taken directly by corporates, with technology, BFSI, and engineering firms occupying 75% of this share. The remaining 22 lakh square feet were leased to co-working operators, who will sub-rent the spaces to corporates and individual professionals, reflecting the growing demand for flexible workspaces.

S K Sayal, MD & CEO of Bharti Real Estate, emphasized the broader implications of this trend. “The 15% rise in office leasing across the top-seven cities is not just a statistical rebound—it is a definitive indicator of how India’s commercial real estate is recalibrating to meet the demands of a maturing economy,” he noted. Sayal also highlighted the shift towards ESG-compliant, tech-integrated, and experience-led workplaces, which are becoming the new industry standard.

Due to its infrastructure and strategic advantages, Delhi-NCR remains a stronghold for commercial leasing. “India’s commercial real estate sector is witnessing remarkable growth,” said Ashish Sharma, AVP Operations, Brahma Group. “Delhi-NCR has consistently led this surge, attracting high-quality leasing activity from global and domestic enterprises.”

As 2025 unfolds, industry leaders remain optimistic about continued momentum in India’s office leasing sector, driven by economic growth, corporate expansions, and a rising preference for flexible, high-quality workspaces.