New Delhi, Aug 14 (NationPress) The technology sector continues to be the cornerstone of office space demand, reinforcing its position as a significant driver of demand across the top 7 Indian cities, according to a recent report. In the first half of 2025 (H1 2025), this sector represented over 10 million sq ft of grade A space uptake, accounting for nearly 40 percent of the total conventional leasing, as noted by Colliers India.

The report emphasizes that the technology sector remains the primary catalyst for large-sized transactions, showcasing growth and long-term space commitments while adapting to evolving workplace strategies.

In H1 2025, technology accounted for 43 percent of leasing through substantial deals in conventional spaces, significantly outpacing the Banking, Financial Services, and Insurance (BFSI) sector, which stood at 28 percent.

The ongoing success in large transactions, especially from leading technology firms, highlights their confidence in the local workforce, infrastructure, long-term market opportunities, and real estate, as per the report.

Recently, large technology deals have surged, with leasing volumes in conventional spaces rising from 6.4 million sq ft in 2023 to 8.7 million sq ft in 2024.

During H1 2025, 6.2 million sq ft of technology leasing through large transactions has already been recorded, indicating a consistent expansion trend.

“The technology sector has shown impressive resilience, even with global uncertainties and workforce adjustments. Since 2020, tech occupiers have leased nearly 85 million sq ft of conventional office space across the top seven cities, making up the majority of large transactions,” stated Arpit Mehrotra, Managing Director of Office Services at Colliers India.

With the expansion of Global Capability Centres (GCC) and a digital transformation driven by AI adoption, large deals are expected to continue fueling the office market in India for the coming years, as per the report.

In H1 2025 alone, this sector propelled 43 percent of large transactions exceeding 100,000 sq ft.

“Despite facing challenges, we anticipate technology occupiers will sustain their leasing momentum throughout 2025, significantly contributing to commercial real estate in India, particularly supported by the growth of GCCs,” Mehrotra added.

Bengaluru remains a central hub for India’s technology sector and is ranked among the top 5 global tech destinations. Meanwhile, Hyderabad continues to enhance its status as a key technology center, both nationally and internationally.

Collectively, these two cities accounted for nearly half of the country's tech leasing over the past five years, underscoring their dominance as preferred markets for technology occupiers, as indicated by the report.

Other cities like Pune, Chennai, and Delhi-NCR also show consistent demand from technology firms.