Office Space Leasing to Decline 1% in Q3 Across Top 7 Cities: Colliers India Report
Office space leasing is expected to fall by 1% in the July-September quarter to 172 lakh square feet across seven major Indian cities, primarily due to lower demand in Bengaluru, Hyderabad, and Delhi-NCR. However, Mumbai, Pune, and Chennai are set to see an increase in demand.
Office SpaceLeasingReal EstateColliers IndiaMajor CitiesReal Estate MumbaiSep 25, 2025
The gross leasing of office space stood at 174 lakh (17.4 million) sq ft in the year-ago period. Gross absorption does not include lease renewals, pre-commitments, and deals where only a Letter of Intent has been signed.
According to the data, the gross office space leasing in Bengaluru is set to fall 25 per cent to 47 lakh (4.7 million) sq ft in the third quarter of this year from 63 lakh (6.3 million) sq ft in the year-ago period. In Delhi-NCR, the office leasing is projected to decline to 16 lakh (1.6 million) from 24 lakh (2.4 million) sq ft.
Hyderabad too is likely to witness a fall of 48 per cent in workspace demand to 15 lakh (1.5 million) sq ft from 29 lakh (2.9 million) sq ft. Colliers India did not provide the reasons for the likely decline in office leasing activities in Bengaluru, Hyderabad, and Delhi-NCR during the current quarter.
Among other major cities, the office demand is set to rise in Mumbai, Pune, and Chennai. The gross leasing of office space in Chennai is estimated to surge 86 per cent to 26 lakh (2.6 million) square feet from 14 lakh (1.4 million) square feet.
In Maharashtra's two big markets, Mumbai and Pune, the office demand remained strong during the July-September quarter. The gross leasing of office space is estimated to rise 76 per cent in Mumbai to 30 lakh (3 million) square feet from 17 lakh (1.7 million) sq ft. In Pune, the leasing activities are likely to increase 42 per cent to 37 lakh (3.7 million) square feet from 26 lakh (2.6 million) square feet.
In Kolkata, the demand remained flat at 1 lakh (0.1 million) sq ft during the third quarter of the current calendar year. Despite subdued demand in the September quarter, the consultant noted that the gross office leasing is estimated to rise 8 per cent to 509 lakh (50.9 million) sq ft during the January-September period of this year from 473 lakh (47.3 million) square feet in the corresponding period of the preceding year.
Commenting on the data, Arpit Mehrotra, Managing Director, Office Services, India, Colliers, said, 'India's office market continues to demonstrate resilience, crossing the 50 million square feet benchmark in the first nine months of the year, despite ongoing external volatilities and trade frictions.' Global Capability Centers (GCCs) have already leased close to 20 million sq ft in 2025 across the top seven cities, contributing around 40 per cent of the overall office space demand, he added.
Frequently Asked Questions
Which cities are expected to see a decline in office space leasing in Q3?
Bengaluru, Hyderabad, and Delhi-NCR are expected to see a decline in office space leasing in the third quarter of this year.
What is the projected gross leasing of office space in Mumbai for Q3?
The gross leasing of office space in Mumbai is estimated to rise 76 per cent to 30 lakh (3 million) square feet from 17 lakh (1.7 million) sq ft.
How much did the gross office space leasing stand at in the year-ago period?
The gross leasing of office space stood at 174 lakh (17.4 million) sq ft in the year-ago period.
Which cities are expected to see an increase in office space demand in Q3?
Mumbai, Pune, and Chennai are expected to see an increase in office space demand in the third quarter of this year.
What is the overall trend in office space leasing for the first nine months of this year?
Despite the decline in Q3, the gross office leasing is estimated to rise 8 per cent to 509 lakh (50.9 million) sq ft during the January-September period of this year from 473 lakh (47.3 million) square feet in the corresponding period of the preceding year.
Related News Articles
Luxury Redefined: Ceratec Group Unveils Presidential Towers in Ravet, Pune
Discover the epitome of luxury living with Ceratec Group's latest project, Presidential Towers, offering 2 and 3 BHK homes in the heart of Ravet, Pune.
Rexas Finance (RXS) Price Forecast: Will It Be a Top Performer in 2025?
Rexas Finance (RXS) is making waves in the financial sector with its innovative approach to asset management. From real estate to art and goods, RXS offers a user-friendly interface for seamless asset trading and management. This article explores the pote
Government Hikes: Ordinary Citizens Bear the Brunt in Karnataka
With a series of tax and price hikes, the Karnataka government is placing a significant financial burden on ordinary citizens. From fuel and liquor to milk and water, the costs are rising, while the government contemplates more increases in property tax,
Port Sector Development: Key Focus in My Third Term, Vadhavan Port Underway
In a significant push towards infrastructure development, the port sector has emerged as a key focus area in my third term. The work on the Vadhavan port has already begun, marking a crucial milestone in this initiative.
Women Lead the Charge in India's Real Estate Market
Women investors are increasingly making their mark in both residential and commercial real estate in India, shattering traditional gender barriers and driving market growth.
Housing Loans Reach ₹33.53 Trillion in Q2FY25: NHB
The National Housing Bank (NHB) reports that housing loans outstanding have reached ₹33.53 trillion in the second quarter of FY25, signaling a promising outlook for the housing sector.