NEW DELHI — India’s office leasing market saw a 15% rise in the January-March quarter of fiscal year 2025, reaching 159 lakh square feet across seven major cities, according to a report by real estate consultancy Colliers India, as published by The Economic Times. The figure marks an increase from 138 lakh square feet leased during the same period last year.
Bengaluru continued to lead the market, with gross leasing climbing 13% to 45 lakh square feet from 40 lakh square feet in the previous year. Chennai recorded the highest percentage growth, surging 93% to 29 lakh square feet from 15 lakh square feet.
Delhi-NCR saw a 32% increase in leasing activity, reaching 33 lakh square feet, compared to 25 lakh square feet a year earlier. Mumbai also experienced growth, with a 16% rise in office leasing, totaling 22 lakh square feet, up from 16 lakh square feet in the same period last year.
Pune’s office space demand jumped 50% to 12 lakh square feet from 8 lakh square feet. However, leasing activity declined in Hyderabad and Kolkata. Hyderabad recorded a 41% drop, with leasing falling to 17 lakh square feet from 29 lakh square feet. Kolkata saw a 50% decline, with transactions shrinking to 1 lakh square feet from 2 lakh square feet.
Colliers’ report noted that gross leasing or absorption excludes lease renewals, pre-commitments, and transactions where only a letter of intent has been signed. Of the 159 lakh square feet leased in the first quarter, 137 lakh square feet were leased directly to corporations, while 22 lakh square feet went to co-working operators, who subleased space to businesses and individuals.
The technology, banking, financial services and insurance (BFSI), and engineering and manufacturing sectors were the primary drivers of demand.
“Key markets are witnessing strong uptake of Grade A office spaces, driven by corporate expansions, rising investments in commercial real estate, amidst promising domestic growth prospects,” said Arpit Mehrotra, managing director of office services at Colliers India.
Mehrotra anticipates continued demand growth throughout 2025, fueled by expansion plans in technology, engineering, manufacturing, and BFSI sectors. He also noted that policy support at the state level is expected to sustain demand for global capability centers (GCCs) in most Tier I and select Tier II cities.