Is India's Grade A Office Leasing Set to Surpass 71 Million Sq Ft in 2025?
Synopsis
India's Grade A office leasing has seen a remarkable surge, exceeding 71 million sq ft in 2025, driven by strong demand and economic growth. Major cities like Bengaluru and Delhi NCR are leading the charge, with a positive outlook for the future of office spaces.
Key Takeaways
Grade A office leasing in India exceeded 71.5 million sq ft in 2025.
Bengaluru accounted for 22.1 million sq ft of leasing.
A record 20.6 million sq ft was leased in Q4 2025.
Conventional office uptake increased by 7 percent to 58.5 million sq ft .
New supply rose by 5 percent to 56.5 million sq ft .
New Delhi, Dec 24 (NationPress) The leasing of Grade A office space in India’s top seven cities has surpassed 71.5 million sq ft in 2025, reflecting a 6 percent increase compared to the previous year, according to a report released on Wednesday.
The analysis by Colliers attributed this healthy leasing trend to strong occupier demand, robust economic growth, the rise of Global Capability Centers, and an inclination towards high-quality assets.
Bengaluru dominated the office leasing sector with an impressive 22.1 million sq ft, accounting for nearly one-third of the total demand across India, while Delhi NCR, Hyderabad, Chennai, and Mumbai each recorded close to or exceeding 10 million sq ft.
This growth is indicative of occupiers expanding their real estate presence across various markets, reinforcing the narrative of strong multi-city demand.
A particularly strong fourth quarter contributed significantly, achieving record-high quarterly leasing of 20.6 million sq ft, representing a 20 percent increase over the prior quarter, primarily driven by Bengaluru's notable 8.1 million sq ft and Delhi NCR's 4.2 million sq ft.
Together, these two cities made up nearly 60 percent of Q4 activity, showcasing substantial deal closures and expansion among occupiers, as noted in the report.
“Ongoing demand from GCCs, technology and BFSI sectors, along with flex space operators, combined with a definitive flight-to-quality trend, suggests a positive outlook for the office market. We anticipate robust leasing activity to continue in 2026, bolstered by scaling demand in major cities, increased adoption of flexible workspace solutions, and a rising interest in sustainable buildings,” stated Arpit Mehrotra, Managing Director of Office Services, India at Colliers.
Conventional office uptake reached 58.5 million sq ft in 2025, marking a 7 percent rise, while flex space uptake hit 13 million sq ft, representing around 18 percent of total leasing.
The demand for office space remained diverse in 2025, with approximately 25 million sq ft of conventional space, or 40 percent of uptake, coming from sectors such as BFSI, engineering, manufacturing, and consulting firms.
New supply across major cities increased by 5 percent to 56.5 million sq ft, with Bengaluru, Hyderabad, and Pune together accounting for nearly 70 percent of completions.
Point of View
It is crucial to note that India’s office leasing market is reflecting a robust recovery and growth trajectory, driven by significant demand from various sectors. This trend underscores the resilience of the Indian economy and the evolving preferences of businesses towards high-quality office spaces.
NationPress
10 May 2026
Frequently Asked Questions
What is the total Grade A office leasing in India for 2025?
India's Grade A office leasing reached 71.5 million sq ft in 2025.
Which city led the Grade A office leasing in India?
Bengaluru led with 22.1 million sq ft of leasing.
What factors contributed to the growth in office leasing?
The growth was driven by strong occupier demand, economic growth, and a preference for high-quality assets.
What future trends are anticipated in the office leasing market?
The outlook remains positive with expected robust leasing activity, especially in flexible and sustainable office spaces.
How much of the total leasing came from flex spaces?
Flex space uptake reached 13 million sq ft, around 18 percent of the total leasing.
