India's Office Space Leasing Grows 11% in Q2 2025

 

India’s office real estate market maintained its strong growth trajectory in the second quarter of 2025, with gross leasing activity touching 17.8 million square feet (msf) across the top seven cities, marking an 11 per cent year-on-year (YoY) increase, according to a report by Colliers released on Thursday.

 

Compared to the previous quarter (Q1 2025), this represents a 12 per cent rise, reinforcing the sustained demand for office space despite ongoing global economic uncertainties. The first half of the year (H1 2025) recorded a total leasing of 33.7 msf of Grade A space, registering a 13 per cent YoY growth, highlighting the sector’s resilience and steady recovery.

 

Bengaluru remained at the forefront of this expansion, contributing 27 per cent of the total leasing in Q2, equivalent to 4.8 msf. Other key markets Hyderabad, Mumbai, and Chennai each recorded over 2.5 msf of leasing, underscoring widespread occupier activity across major metros.

 

“The fact that five of the seven major cities recorded over 2.0 million square feet of leasing each in a single quarter highlights the depth and vibrancy of India’s office market”, said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.

 

Leasing activity was driven by a broad range of occupiers including technology firms, banking and financial services institutions (BFSI), engineering, and manufacturing companies. Notably, flexible workspace providers are becoming central to the demand ecosystem.

 

Flex space leasing stood at 4.3 msf in Q2 2025 a staggering 65 per cent increase YoY indicating their growing role in shaping workplace strategies. “Flex spaces are increasingly establishing themselves as a key demand driver in India’s office market”, said Vimal Nadar, National Director and Head of Research, Colliers India.

 

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Meanwhile, new supply in the quarter touched 14.9 msf, also up 11 per cent YoY, ensuring that fresh inventory is keeping pace with rising demand. Conventional leasing remained strong at 13.5 msf, driven by sustained interest from traditional office occupiers.

 

Given the current momentum, total office space demand in 2025 is poised to touch 65–70 msf, further bolstering India’s commercial real estate landscape.