Office Space Demand in Top 6 Cities to Reach 700 Lakh Sq Ft in 2025
Real estate consultant Colliers India projects a strong demand for office space in the top six cities, including Bengaluru, Pune, Hyderabad, and Chennai, with gross leasing transactions estimated at 650-700 lakh square feet this year.
Office Space DemandReal EstateTop CitiesGross LeasingColliers IndiaReal Estate PuneFeb 11, 2025
The gross leasing of office space in 2024 reached a record high of 664 lakh square feet across Delhi-NCR, Mumbai, Bengaluru, Pune, Hyderabad, and Chennai.
Colliers India released its report 'India Office Setting New Standards for 2025' at the FICCI 18th Real Estate Summit in New Delhi.
The report highlights the significant scale-up in office leasing and supply in these cities, which has driven the office market to set new records year after year.
Arpit Mehrotra, Managing Director of Office Services at Colliers India, stated, 'The scale-up is mainly driven by evolving occupier preferences and is likely to gain further momentum, with gross leasing across the top six cities projected to reach 65-70 million (650-700 lakh) sq ft in 2025.'
The surge in leasing volume is attributed to the diversification of the occupier base, continued expansion of Global Capability Centers (GCCs), and business optimism among domestic occupiers.
Bengaluru is expected to lead the way, accounting for an estimated one-third of the overall office space demand in 2025.
This demand is primarily driven by space uptake from GCCs, engineering and manufacturing firms, and flex space operators.
Hyderabad and Delhi-NCR are likely to see heightened activity and register 10-15 million (100-150 lakh) square feet of leasing activity each.
Mumbai, Chennai, and Pune are expected to witness 5-10 million (50-100 lakh) square feet of Grade A office space demand each in 2025.
DLF's Vice Chairman and MD (Rental Business) Sriram Khattar commented, 'The current space take-up scenario is quite robust, with GCCs, technology companies, BFSI, and managed office space operators providing strong impetus.' Corporate clients are increasingly distinguishing between Grade A and Grade A plus properties, which meet all safety norms and are sustainable for the overall well-being of their employees.
Peush Jain, MD-Commercial Leasing and Advisory at Anarock Group, noted that GCCs have emerged as the largest office occupiers in top metro cities.
'In 2025, the expansion of GCCs and IT/ITeS in Tier-1 and Tier-2 cities will be the key growth driver of office demand,' he added.
The report by Colliers India provides valuable insights into the future of the office space market in India, highlighting the key drivers and trends that will shape the industry in the coming years.
Frequently Asked Questions
What is the projected office space demand in India's top six cities for 2025?
The projected gross leasing transactions for office space in India's top six cities for 2025 are estimated at 650-700 lakh square feet.
Which cities are expected to lead the office space demand in 2025?
Bengaluru is expected to account for one-third of the overall office space demand, followed by Hyderabad and Delhi-NCR with 10-15 million (100-150 lakh) square feet of leasing activity each.
What are the key drivers of the surge in office space demand?
The key drivers include the diversification of the occupier base, continued expansion of Global Capability Centers (GCCs), business optimism among domestic occupiers, and the robust take-up by technology companies and managed office space operators.
How is the office space demand expected to impact Grade A and Grade A plus properties?
Corporate clients are increasingly distinguishing between Grade A and Grade A plus properties, which meet all safety norms and are sustainable for the overall well-being of their employees, leading to a higher demand for these properties.
What role are GCCs playing in the office space market?
GCCs have emerged as the largest office occupiers in top metro cities and are expected to drive the expansion of office demand in Tier-1 and Tier-2 cities in 2025.
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