Office space leasing climbs 6% to 71.5 million sq ft in 2025 across top cities: Report

Office space leasing across India’s top seven cities rose 6 per cent in the 2025 calendar year to 71.5 million square feet, driven by sustained demand from domestic and foreign corporates, according to data released by real estate consultant Colliers India.

Colliers said the growth reflects continued expansion by companies, particularly in the technology and banking, financial services and insurance (BFSI) sectors, and noted that office demand is expected to remain robust in the coming year.

As per the data, gross leasing of Grade A office spaces increased to an estimated 71.5 million square feet in 2025, compared with 67.2 million square feet in the 2024 calendar year. Gross absorption figures exclude lease renewals, pre-commitments and transactions where only a letter of intent has been signed.

“India’s office market continues to scale up and set new highs every passing year,” said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.

City-wise performance

Among the seven major cities, office leasing declined in Mumbai and Hyderabad during the year, while the remaining five cities — Bengaluru, Chennai, Pune, Kolkata and Delhi-NCR — recorded growth.

Bengaluru remained the largest office market, with leasing rising 2 per cent to 22.1 million square feet in 2025, compared with 21.7 million square feet in the previous calendar year.

Chennai reported the sharpest increase, with leasing rising 41 per cent to 9.6 million square feet from 6.8 million square feet in 2024. Delhi-NCR saw a 16 per cent increase in office leasing to 11.3 million square feet, up from 9.7 million square feet last year.

Pune recorded a 37 per cent rise in leasing activity to 7.8 million square feet from 5.7 million square feet in the preceding year, while Kolkata witnessed a 38 per cent increase to 1.1 million square feet from 0.8 million square feet.

In contrast, Hyderabad saw a 19 per cent decline in leasing, with volumes falling to 10.1 million square feet in 2025 from 12.5 million square feet in the previous year. Mumbai registered a marginal 5 per cent decline, with leasing dropping to 9.5 million square feet from 10 million square feet in 2024.

GCCs and flexible workspaces drive demand

Colliers said Global Capability Centres (GCCs) have emerged as one of the key drivers of office space demand in India. According to the consultant, foreign companies are increasingly setting up GCCs in the country due to the availability of skilled talent and the supply of premium office spaces at comparatively affordable rentals.

The report also noted that corporates are opting for a mix of conventional office spaces and managed workspaces offered by coworking operators.

Out of the total 71.5 million square feet leased during the year, coworking and flexible workspace operators accounted for 13 million square feet. These operators typically lease large office spaces, establish their own centres and sub-lease workspaces to corporate occupiers.

Colliers said the combination of steady corporate expansion, rising GCC activity and growing preference for flexible office formats is expected to support office leasing momentum in the coming year.

(With inputs from agencies)