India’s office market experienced robust activity in Q2 2025, with 17.8 million square feet leased across major cities. Bengaluru led the way with 4.8 million sq ft, followed by strong demand in Hyderabad, Mumbai, and Chennai. A steady supply and occupier confidence signal a strong outlook for the remainder of 2025.
Bengaluru Tops Office Leasing Charts in Q2 2025 as India’s Commercial Real Estate Booms
BENGALURU: India’s office market maintained its strong upward momentum in Q2 2025, with leasing volumes reaching 17.8 million square feet across the top seven cities, according to the latest data from Colliers. Bengaluru once again dominated the landscape, accounting for 27% of the total leasing at 4.8 million square feet.
Hyderabad, Mumbai, and Chennai also posted solid numbers, each crossing 2.5 million sq ft of leasing during the quarter. The overall performance highlights a broad-based recovery and growing demand across key markets, especially from sectors such as technology, BFSI, engineering, manufacturing, and flex space operators.
New Supply Anchored in South India
Bengaluru and Hyderabad together contributed over half of Q2’s new office space supply, while Pune also recorded significant additions. In total, India saw 14.9 million sq ft of new completions in Q2, with Bengaluru, Pune, and Hyderabad leading the charge. These three cities alone accounted for 70% of the 24.8 million sq ft delivered in H1 2025.
The surge in new supply has not dampened demand. Instead, it reflects the market’s underlying strength and growing investor confidence, particularly in Grade A developments.
Sustained Growth and Strong Fundamentals
India’s office market clocked 33.7 million sq ft of gross leasing in the first half of 2025, up 13% year-on-year. This follows two years of strong recovery post-pandemic, cementing the country’s position as a resilient and rapidly expanding commercial real estate hub.
“The fact that five of the seven major cities recorded over 2.0 million square feet of leasing each in a single quarter highlights the depth and vibrancy of India’s office market,” said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.
Optimistic Outlook for 2025
Looking ahead, office space demand is expected to maintain its momentum. “Backed by a diversifying occupier base, a steady supply pipeline and growing investor appetite, 2025 is shaping up to be another impressive year for commercial real estate in India,” Mehrotra noted.
Colliers estimates that India’s office leasing activity could reach 65–70 million square feet by the end of 2025, driven by rising demand for flexible workspaces, expanding tech hubs, and an optimistic business outlook across metros and tier-1 cities.
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