Q2 2025 sees 17.8 msf of leasing and 14.9 msf of new supply across the top 7 cities, registering an 11% YoY growth in each
- Bengaluru & Hyderabad drive 45% of the total demand, and 51% of the new supply during the quarter
- Technology sector drives 47% of conventional leasing during Q2 2025, followed by BFSI firms at 19% share
- Flex spaces contribute close to one-fourth of the total office space demand in Q2 2025
Bengaluru, 26 June 2025: India’s office market continued its strong growth trajectory in Q2 2025, recording 17.8 million square feet of gross leasing across the top seven cities, an 11% increase compared to Q2 2024. This also marks a 12% growth compared to the office space demand in the first quarter of the year and underscores the resilience of commercial real estate in India even in the wake of ongoing global uncertainties.
Bengaluru led leasing activity during Q2 2025 with a 27% share at 4.8 million square feet, reaffirming its position as India’s top office market. Hyderabad, Mumbai and Chennai also witnessed strong occupier traction, each recording over 2.5 million square feet of leasing in the quarter—reflecting broad-based demand across established office markets. In fact, five out of the top seven office markets in India witnessed a growth in Grade A space uptake on an annual basis. This momentum signals growing occupier confidence, particularly from flex space operators and firms across sectors such as technology, BFSI and engineering & manufacturing etc.
“India’s office market continues its upward trajectory in 2025, building on the momentum of past two years. The robust performance in the first half—with demand reaching 33.7 million square feet, a 13% year-on-year increase—signals sustained occupier confidence and strong market fundamentals. 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 office market. Backed by diversifying occupier base, a steady supply pipeline and growing investor appetite, 2025 is shaping up to be another impressive year for commercial real estate in India. Overall, office space demand looks well placed to reach 65-70 million square feet at least by the end of the year,” said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.
Trends in Grade A gross absorption (in million sq feet)
| City | Q2 2025 | Q2 2024 | YoY change | H1 2025 | H1 2024 | YoY change (H1 2025 vs H1 2024) |
| (Q2 2025 vs Q2 2024) | ||||||
| Bengaluru | 4.8 | 4.8 | 0% | 9.3 | 8.8 | 6% |
| Chennai | 2.6 | 2 | 30% | 5.5 | 3.5 | 57% |
| Delhi-NCR | 2.2 | 1.9 | 16% | 5.5 | 4.4 | 25% |
| Hyderabad | 3.2 | 2.6 | 23% | 4.9 | 5.5 | -11% |
| Kolkata | 0.6 | 0.3 | 100% | 0.7 | 0.5 | 40% |
| Mumbai | 2.8 | 3.5 | -20% | 5 | 5.4 | -7% |
| Pune | 1.6 | 1 | 60% | 2.8 | 1.8 | 56% |
| Pan India | 17.8 | 16.1 | 11% | 33.7 | 29.9 | 13% |
Source: Colliers
Gross absorption does not include lease renewals, pre-commitments and deals where only a letter of Intent has been signed.
Top 7 cities include Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, and Pune
Bengaluru & Hyderabad together drive more than half of new supply during Q2 2025; Pune also sees notable completions
New supply across the top seven office markets remained strong in Q2 2025, with 14.9 million square feet of completions—an 11% increase year-on-year. Bengaluru and Hyderabad together accounted for over half of the quarter’s new supply, while Pune also saw notable completions, at 3.3 million square feet. On a half yearly basis too, new supply was concentrated in Bengaluru, Pune and Hyderabad. These three cities cumulatively accounted for 70% of the 24.8 million square feet of completions in H1 2025.
Trends in Grade A new supply (in million sq feet)
| City | Q2 2025 | Q2 2024 | YoY change | H1 2025 | H1 2024 | YoY change (H1 2025 vs H1 2024) |
| (Q2 2025 vs Q2 2024) | ||||||
| Bengaluru | 4.1 | 2 | 105% | 7.8 | 6.4 | 22% |
| Chennai | 1.3 | 0.6 | 117% | 1.5 | 0.9 | 67% |
| Delhi-NCR | 1.1 | 2.7 | -59% | 3.8 | 3.2 | 19% |
| Hyderabad | 3.5 | 3.6 | -3% | 3.8 | 6.2 | -39% |
| Kolkata | 0 | 0.2 | -100% | 0.1 | 0.4 | -75% |
| Mumbai | 1.6 | 4 | -60% | 2 | 5 | -60% |
| Pune | 3.3 | 0.3 | 1000% | 5.8 | 1.3 | 346% |
| Pan India | 14.9 | 13.4 | 11% | 24.8 | 23.4 | 6% |
Source: Colliers
Top 7 cities include Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, and Pune
Quarterly flex space activity close to all-time high, led by Bengaluru
Trends in conventional and flex space leasing (in million sq feet)
| Q2 2025 (Share in %) | Q2 2024 | YoY change | H1 2025 (Share in %) | H1 2024 | YoY change | |
| (Share in %) | (%) | (Share in %) | (%) | |||
| Conventional leasing (msf) | 13.5 (76%) | 13.5 (84%) | 0% | 27.2 (81%) | 25.5 (85%) | 7% |
| Flex space leasing (msf) | 4.3 (24%) | 2.6 (16%) | 65% | 6.5 (19%) | 4.4 (15%) | 48% |
| Total | 17.8 | 16.1 | 11% | 33.7 | 29.9 | 13% |
Source: Colliers
Data pertains to top 7 cities – Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, and Pune
India’s office leasing in Q2 2025 remained broad-based, with traction in both conventional and flex space uptake. Of the total 17.8 million square feet of leasing across the top seven cities, leasing by flex space operators stood at 4.3 million square feet. Following the all-time high quarterly demand in Q4 2024, flex operators took more than 4 million square feet of Grade A space for the second time ever in Q2 2025.
Conventional leasing remained buoyant at 13.5 million square feet, led primarily by the Technology and BFSI sectors. Technology firms alone accounted for 6.4 million square feet space uptake—a 42% YoY growth, driven largely by Global Capability Center (GCC) expansion. Cumulatively, technology occupiers have leased over 10 million square feet of conventional space in H1 2025, reflecting the sector’s criticality and its role in shaping India’s office market trajectory.
“Flex spaces are increasingly establishing themselves as a key demand driver in India’s office market. With 4.3 million square feet of leasing in Q2 2025—a 65% YoY rise—flex operators are not just fuelling demand, but also actively defining occupier workplace preferences. While Bengaluru continues to be the epicentre, accounting for one-third of the flex activity during Q2 2025, other mature markets such as Mumbai, Hyderabad and Chennai continue to witness notable flex space uptake. Given the current momentum, flex spaces are likely to define contours of commercial real estate in India throughout 2025 and beyond,” said Vimal Nadar, National Director and Head of Research, Colliers India.
Vacancies and rentals remained rangebound across most cities
Although office space demand continued to outpace new supply across most cities in the second quarter of the year, vacancy levels remained rangebound on account of relocations and churns. While overall vacancy level remained almost stable at 16.2%, Pune and Hyderabad, with significant completions in Q2 2025 were at relatively higher vacancy levels. Average rentals, meanwhile, remained largely stable on a sequential basis. Overall, the office market with its wide rental spectrum across cities and micro markets continued to present an attractive proposition for global players to consolidate in India.
Key deals Q2 2025 Pan India (conventional leasing) –
| City | Occupier/Tenant | Area leased (sq ft) | Building Name | Micro market |
| Hyderabad | Tata Consultancy Services | 1,018,400 | Rajapushpa Paradigm | Off SBD |
| Mumbai | Wipro | 387,100 | Mindspace Business Parks | Navi Mumbai |
| Kolkata | Capgemini | 241,000 | Candor | PBD |
| Delhi NCR | Tata Consultancy Services | 240,000 |