India’s office leasing maintains momentum through 3 quarters

India’s office leasing activity across top seven office markets has continued to remain upbeat in the first three quarters of this year.

Space uptake for the year so far has reached 50.9 million square feet (sq. ft.), marking an 8 per cent YoY growth. However, on a quarterly basis, it dipped marginally to 17.2 million square feet in Q3, according to Colliers survey.

While Bengaluru continued to drive overall transaction volumes in the third quarter, Pune, Mumbai and Chennai, particularly witnessed high demand traction. The three cities cumulatively accounted for more than half of the quarterly Grade A office space uptake. Notably, each of the three cities saw a YoY demand growth of at least 40 per cent in Q3.

In terms of 9-month space uptake, Bengaluru retained its dominance with 14 million sq. ft. of leasing and 27 per cent share in the overall India office space demand. Interestingly, Grade A space uptake has been more evenly balanced in Chennai, Delhi NCR, Hyderabad, Mumbai & Pune. Each of these five cities has already witnessed leasing activity to the tune of 6–8 million square feet in 2025, underscoring the momentum across most major cities of the country.

“India’s office market continues to demonstrate resilience, crossing the 50 million square feet benchmark in the first nine months of the year, despite ongoing external volatilities and trade frictions. This steady momentum has been fueled by a surge in space uptake by GCCs and continued traction in leasing activity from domestic firms. GCCs have already leased close to 20 million sq. ft. in 2025 across the top seven cities, contributing around 40% of the overall office space demand. Going forward, global technology firms will play a pivotal role in driving the office space demand close to 70 million sq. ft. by the end of the year,” said Arpit Mehrotra, Managing Director, Office services, India, Colliers.

New supply across the top seven office markets remained robust in Q3 of 2025, with 16.6 million square feet of completions, marking a 15 per cent YoY increase. Pune led the momentum with a nearly 4X surge in quarterly completions at 4.6 million square feet, followed by Bengaluru and Delhi-NCR. New supply reached 41.4 million sqft in the first 9 months, with Bengaluru and Pune together contributing 54 per cent of the new supply.

Meanwhile, new completions have been relatively lower in Hyderabad, Mumbai and Kolkata as compared to the corresponding period in 2024. Conventional leasing in the first nine months of 2025 stood at 41.7 million sq. ft., led primarily by the technology and BFSI sectors. Technology firms alone leased over 15 million sq. ft., a robust 24% YoY growth, largely driven by the expansion of Global Capability Centers (GCCs). This underscores the technology sector’s pivotal role in shaping the scale and quality of demand. During the nine months, flex space leasing reached close to the all-time high, at 9.2 million square feet, reflecting the increasing trend of dynamic real estate requirements.

On a quarterly basis, conventional spaces accounted for 84% of the 17.2 million sqft of Grade A office space uptake in Q3. Flex activity, meanwhile, also remained strong in the third quarter with 2.7 million square feet of space uptake.

“Overall, the preference for agile workplace strategies and flex space adoption continues to be on the upswing across India and can potentially account for one-fifth of the overall demand in 2025,” said Vimal Nadar, National Director and Head of Research, Colliers India.

Despite office space demand exceeding new supply across most cities in Q3 2025, vacancy levels remained rangebound on account of relocations and churns. Meanwhile, average rentals continued their upward trajectory across major markets, supported by robust demand-supply dynamics. However, the India office market with its wide rental spectrum across cities and micro markets, continues to present an attractive proposition for global players to consolidate their operations in the country.

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