How Much Does the Tech Sector Contribute to Office Leasing in India's Major Cities in Q1?

Mumbai, June 28 (NationPress) The technology sector constitutes approximately 31 percent of the total gross leasing across India's top seven cities in Q1 2025, as highlighted in a recent report published on Saturday.

Following a brief downturn during the pandemic, leasing activity in the tech sector has made a strong recovery, accounting for 26 percent in 2024 and further increasing to 30 percent of overall office leasing in Q1 2025 (January-March), according to findings from JLL.

This sector has consistently been a cornerstone of office demand, resulting in a total of 130.8 million sq. ft of gross leasing from 2017 through Q1 2025, the report indicates.

“The narrative surrounding India’s office market is intricately linked to the progress of our tech sector. While the overall sector remains pivotal, it is the Global Capability Centres (GCC) that are currently leading the way,” stated Samantak Das, Chief Economist at JLL.

India's GCCs are rapidly transforming from basic cost-saving centres to hubs of innovation, research and development, and global business transformation. This shift is reflected in India’s service export trends, where the share of business services has significantly increased from 19 percent in 2017-18 to 26 percent in 2023-24, according to the report.

Tech occupiers, especially GCCs, are highly focused on acquiring Grade A office spaces in regions with a high density of skilled professionals. Bengaluru and Hyderabad together represent 64 percent of GCC leasing, a strategic choice influenced by their unmatched talent ecosystems, as mentioned in the report.

Moreover, the emergence of cities like Ahmedabad, Kochi, Coimbatore, Indore, and Jaipur, with over 190 GCC units, signals a new growth frontier, providing cost and talent diversification advantages that forward-thinking companies are already capitalizing on, the report stated.

Foreign tech companies are increasingly drawn to Delhi NCR, taking advantage of the region's rich core tech talent, robust infrastructure, and proximity to key clients. This trend is often observed in firms that predate the widespread GCC model or have specific business mandates benefitting from the capital’s comprehensive commercial ecosystem.

Domestic tech firms exhibit a more dispersed presence, which reflects their expansive pan-India operations and the necessity to access varied talent corridors. While Delhi NCR, Bengaluru, Chennai, and Hyderabad continue to be essential hubs, their balanced approach emphasizes a strategy to access diverse talent pools. This allows them to support extensive operations and tap into a variety of skill sets without becoming overly reliant on a single, highly competitive talent pool, the report noted.

The report further indicates that Mumbai is a major hub for BFSI and management talent within the tech field. Pune and Chennai are recognized as specialized centres for R&D, ERP implementation, and product development.

In every scenario, leasing decisions in these markets are closely aligned with the availability of relevant, niche talent, underscoring a precision-driven location strategy that prioritizes skill-specific ecosystems over mere numbers, the report added.