Office Space Leasing Surges in Major Indian Cities: A Market Analysis

The demand for office space in India's seven major cities rose by 15% during the January-March period, reaching 159 lakh square feet. Key cities like Bengaluru, Chennai, and Delhi-NCR saw significant growth, while leasing declined in Hyderabad and Kolkata. Corporate expansions and co-working demand are the main drivers.

The Indian office space market showed a robust performance in the first quarter of 2025, with a 15% increase in gross leasing across seven major cities, according to a report by Colliers India. The total leased area rose to 159 lakh square feet, up from 138 lakh square feet in the previous year.

Significant growth was witnessed in cities like Bengaluru, which saw a 13% rise, and Chennai with a 93% surge in leasing activity. Delhi-NCR and Pune also experienced substantial increases, while Hyderabad and Kolkata faced declines of 41% and 50%, respectively. The demand was largely driven by technology firms, BFSI companies, and the engineering and manufacturing sectors.

Colliers India's Managing Director, Arpit Mehrotra, pointed out that corporate expansions and increasing investments in Grade A spaces are key factors in this market surge. He anticipates the momentum will continue to grow throughout the year, propelled by expansion plans across major industries and supportive state policies.

(With inputs from agencies.)