India's commercial real estate market has demonstrated remarkable resilience and growth, with office space leasing across the country's top seven cities climbing by 6% during the current year. According to data released by real estate consultant Colliers India, gross leasing of Grade A office spaces reached an estimated 71.5 million square feet in 2025, up from 67.2 million square feet in the 2024 calendar year. This upward trend is fueled by robust demand from both domestic and international corporations.
Regional Performance: A Mixed Bag with Strong Growth Leaders
The growth narrative was not uniform across all major hubs, revealing interesting geographic shifts in demand. While the markets of Mumbai and Hyderabad experienced a dip, five other cities posted significant gains.
Bengaluru retained its position as the largest market, with leasing activity increasing by 2% to 22.1 million square feet. However, the most dramatic growth was seen in other metros:
- Chennai witnessed a staggering 41% surge, leasing 9.6 million square feet.
- Pune followed closely with a 37% jump to 7.8 million square feet.
- Delhi-NCR saw a healthy 16% rise to 11.3 million square feet.
- Kolkata recorded a robust 38% growth, reaching 1.1 million square feet.
On the other hand, Hyderabad saw a 19% decline to 10.1 million square feet, and Mumbai witnessed a marginal 5% de-growth, settling at 9.5 million square feet.
Key Drivers: GCCs and Flexible Workspaces Propel Demand
Colliers India highlighted that Global Capability Centers (GCCs) have emerged as a primary engine for office demand. Foreign companies are increasingly establishing these centers in India, attracted by the deep pool of skilled talent and the availability of premium office spaces at relatively affordable rental rates compared to global benchmarks.
Another significant trend is the evolving preference of corporates. Companies are now actively opting for a mix of conventional office spaces and managed workspaces offered by coworking or flexible space operators. This segment has carved out a substantial share of the market. In 2025, flexible space operators accounted for 13 million square feet of the total 71.5 million square feet leased, indicating a strong shift towards agile and scalable office solutions.
Optimistic Outlook for the Coming Year
The future looks promising for India's office sector. Colliers India expects demand to remain robust in the upcoming year, primarily driven by sustained expansion in the technology and BFSI (Banking, Financial Services, and Insurance) sectors. Arpit Mehrotra, Managing Director of Office Services at Colliers India, encapsulated the sentiment, stating, "India's office market continues to scale up and set new highs every passing year."
The data on gross absorption specifically excludes lease renewals, pre-commitments, and deals where only a letter of intent has been signed, focusing purely on new leasing activity, which underscores the genuine growth in fresh demand.
