India's office market leasing hit a record 71.5 million sq ft in 2025, up 6% from the previous year. A strong Q4, led by Bengaluru and Delhi NCR, fueled this growth. Tech firms, GCCs, and the BFSI sector were the primary demand drivers.
India's office market reached a new high in 2025 as leasing of high-quality workspaces crossed the 70 million square feet mark for the first time. A strong surge in the final three months of the year helped the market achieve 71.5 million square feet of total leasing, which is a 6 per cent increase from the previous year, according to a release by Colliers India.
Record-Breaking Final Quarter
The final quarter of 2025 saw record-breaking activity with 20.6 million square feet of office space taken up by companies, a 20 per cent jump compared to the third quarter. Bengaluru led this growth, recording its highest-ever quarterly leasing at 8.1 million square feet. Together with Delhi NCR, these two cities made up nearly 60 per cent of all office deals in the last three months of the year.
Positive Market Outlook
"India's office market continues to scale up and set new highs every passing year. With continued demand from GCCs, technology & BFSI firms and flex space operators, alongside a clear flight-to-quality, the office market outlook remains positive. Going ahead, we expect leasing activity to remain robust in 2026, supported by demand scale-up across major cities, increasing adoption of flexible & managed workspace solutions, and high traction in sustainable buildings," said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.
Sector-Wise Demand Breakdown
Technology companies were the biggest buyers of office space, accounting for 37 per cent of the total demand in 2025. These firms leased nearly 22 million square feet of space during the year, growing their footprint by 32 per cent compared to 2024. Other sectors like banking, finance, and manufacturing also showed strong interest, making up over 40 per cent of the leasing activity.
Global Capability Centers (GCCs) also played a major role in this growth. These centres, which handle advanced work like research and artificial intelligence, took up nearly 30 million square feet of office space in 2025. This represents more than 40 per cent of the total demand for the year.
Future Trends and Flex Spaces
"Technology firms continued to drive commercial real estate in India, accounting for over 40 per cent of the demand in both conventional as well as flex spaces during the last quarter. In fact, of the 7 million sq ft of conventional space uptake by technology firms during Q4 2025, large-sized deals accounted for almost two-thirds of the leasing activity. With leading operators likely to expand aggressively and ramp up their offerings in Tier II cities, we expect almost one-fifth of the office space demand to come from flex space operators in 2026 and beyond," said Vimal Nadar, National Director and Head of Research, Colliers India.
Supply, Vacancy, and Rental Trends
While demand grew, the amount of new office buildings completed remained steady at 56.5 million square feet. Because companies took up space faster than new buildings were finished, the number of empty offices fell. This led to an increase in rent prices, which rose by up to 15 per cent in major cities across the country. (ANI)
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