India's office space business market continued its growth trajectory in the April-June quarter (Q2 2025) by recording gross leasing of 17.8 million square feet in the country's top seven cities, as per a report published on Thursday. This is an 11% increase from the same quarter last year (Q2 2024).
The Colliers findings also underscored a 12% quarter-on-quarter expansion, demonstrating persistent demand for office accommodation in the face of ongoing global economic instability.
In the first half of 2025, aggregate leasing of Grade A offices was 33.7 million square feet, a 13% expansion compared to the same period in 2024, indicating a consistent and positive trend for the industry.
Bengaluru re-emerged as the top office leasing hub in Q2 with 4.8 million square feet or nearly 27% of all activity, reasserting leadership in the space. The other metros, such as Hyderabad, Mumbai, and Chennai, also indicated substantial occupier demand, with each recording over 2.5 million square feet of leasing in the quarter.
This demand rise signifies increased confidence from occupiers, particularly from flex-space providers and businesses in the technology, BFSI, engineering, and manufacturing industries.
"The fact that five of the seven key cities posted above 2.0 million square feet of leasing each in a quarter says it all about the depth and vibrancy of India office market," commented Arpit Mehrotra, Managing Director, Office Services, India, Colliers.
With a robust pipeline of future projects, expanding base of tenants, and growing interest from investors, 2025 is likely to be another milestone year for India's commercial realty sector.
"Overall, office space demand seems poised to hit 65-70 million square feet at least by the end of the year," Mehrotra said.
The second quarter of 2025 also witnessed strong new supply, with completions totaling 14.9 million square feet—11% year-over-year up. Traditional leasing continued to be strong at 13.5 million square feet, with the primary drivers being demand from BFSI players and technology companies.
"Flex spaces are increasingly becoming a demand driver in India's office market. With leasing of 4.3 million square feet in Q2 2025 — a 65 per cent YoY increase — flex operators are not only driving demand, but also proactively shaping occupier workplace choices," said Vimal Nadar, National Director and Head of Research, Colliers India.
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