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.
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.
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.
