According to Colliers, India’s office real estate market recorded 17.8 million sq ft of gross leasing in Q2 2025, marking an 11% YoY growth. Bengaluru led the surge with a 27% share, while flex space operators drove record demand. Total annual demand may hit 70 million sq ft by year-end.
India’s Office Space Demand Hits New High in Q2 2025
BENGALURU: India’s commercial office sector showed remarkable resilience in Q2 2025, with gross leasing activity hitting 17.8 million square feet across the top seven cities — an 11% increase over the same period last year, according to a new report by Colliers. The momentum also marked a 12% quarter-on-quarter rise, underlining the steady revival of the sector despite global economic headwinds.
The first half of 2025 (H1) saw total leasing of 33.7 million sq ft of Grade A space, reflecting a 13% annual growth and positioning the sector for another strong year.
Bengaluru Stays on Top, Flex Spaces Gain Ground
Bengaluru continued dominating India’s top office market, accounting for 4.8 million sq ft or 27% of total leasing in Q2. Major cities like Hyderabad, Mumbai, and Chennai also recorded over 2.5 million sq ft each, highlighting broad-based demand across key urban centres.
“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.
A key growth driver was the flex space segment, which recorded 4.3 million sq ft of leasing in Q2 — a 65% year-on-year jump. “Flex operators are not just fuelling demand, but also actively defining occupier workplace preferences,” noted Vimal Nadar, National Director and Head of Research, Colliers India.
Tech, BFSI, and Manufacturing Lead Leasing Activity
Sector-wise, the technology, banking and financial services (BFSI), engineering and manufacturing industries continued to lead leasing activity. Conventional leasing also remained robust, accounting for 13.5 million sq ft of the total demand in Q2.
With companies seeking agility and a better employee experience, demand for flexible, high-quality office spaces remains high — a trend expected to continue throughout the year.
Strong Supply Pipeline Supports Demand Surge
New office supplies also kept pace with rising demand. In Q2 2025 alone, 14.9 million sq ft of new office space was completed — an 11% increase year-on-year. This steady supply pipeline, a diversifying occupier base, and strong investor interest signal a healthy outlook for the remainder of 2025.
“Office space demand looks well placed to reach 65-70 million square feet at least by the end of the year,” Mehrotra added.
With robust fundamentals and growing occupier confidence, India’s office market is on track to close 2025 as one of its strongest years.
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