What’s Driving the 11% Growth in India’s Office Market in April-June?

Bengaluru, June 26 (NationPress) India's office market has shown remarkable resilience, achieving a substantial growth of 11 percent in gross leasing during the April-June period (Q2 2025), totaling 17.8 million square feet (msf) across the top seven metropolitan areas, according to a recent report released on Thursday.

This growth represents a 12 percent increase compared to the demand for office spaces in the first quarter of the year, highlighting the robustness of India's commercial real estate sector amidst ongoing global challenges, as stated in the report by Colliers.

In the first half of this year (H1 2025), the momentum persisted with a total uptake of 33.7 msf of Grade A office spaces, marking a 13 percent year-on-year growth.

Bengaluru led the leasing activities in Q2 with a significant 27 percent share, equating to 4.8 million square feet, solidifying its status as India’s premier office market. Other cities such as Hyderabad, Mumbai, and Chennai also demonstrated strong demand, each with leasing exceeding 2.5 million square feet in the quarter.

This upward trend indicates a rising confidence among occupiers, particularly from flexible space operators and companies across various sectors including technology, BFSI, and engineering and manufacturing.

“The fact that five out of the seven major cities recorded over 2.0 million square feet of leasing within a single quarter signifies the depth and vibrancy of the Indian office market,” commented Arpit Mehrotra, Managing Director of Office Services, India at Colliers.

Supported by a diverse base of occupiers, a consistent supply pipeline, and increasing investor interest, 2025 is poised to be another remarkable year for commercial real estate in India.

“Overall, the demand for office spaces is projected to reach between 65-70 million square feet by the close of the year,” Mehrotra added.

New completions in the top seven office markets remained robust in Q2 2025, with 14.9 million square feet delivered, reflecting an 11 percent year-on-year increase.

Conventional leasing was strong at 13.5 million square feet, primarily driven by the technology and BFSI sectors.

“Flexible spaces are increasingly becoming a critical demand driver in India's office market. With 4.3 million square feet of leasing in Q2 2025, representing a 65 percent year-on-year rise, flexible operators are not only boosting demand but are also actively shaping occupier workplace preferences,” noted Vimal Nadar, National Director and Head of Research at Colliers India.