India’s commercial office market continued to see strong demand in the first half of 2025, with the technology sector anchoring nearly 40 per cent of conventional office leasing. Large-sized transactions of over 100,000 sq ft remained the backbone of activity, accounting for 51 per cent of total leasing across the top seven cities, according to the latest report from Colliers India.

Technology occupiers leased 10.8 million sq ft of space in H1 2025, with 43 per cent of it through large-sized deals. Though the sector’s overall share in leasing has slightly dipped since 2020, absolute leasing volumes have consistently grown, rising from 6.4 million sq ft in 2023 to 8.7 million sq ft in 2024, and reaching 6.2 million sq ft in H1 2025. This growth is fuelled by the expansion of Global Capability Centres (GCCs) and rapid adoption of artificial intelligence.

“The technology sector continues to demonstrate remarkable resilience, even amid global uncertainties. We expect tech occupiers to maintain leasing momentum throughout 2025, supported by GCC expansion, India’s strong IT talent pool, and cost advantages,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.

Bengaluru and Hyderabad led the demand, together contributing nearly half of India’s tech leasing over the past five years. In H1 2025, Bengaluru recorded 3 million sq. ft. (28 per cent) of tech leasing, followed by Hyderabad at 2.3 million sq. ft. (21 per cent). Pune, Chennai, and Delhi-NCR also saw steady growth.

Top micro-markets like ORR and Whitefield (Bengaluru), SBD and Off-SBD (Hyderabad), and OMR (Chennai) accounted for nearly half of India’s total tech leasing in H1 2025. These hubs remain attractive due to competitive rentals, large floor plates, and access to skilled talent.

“With trends like AI adoption, cloud computing, and cybersecurity shaping the industry, the tech sector could account for 40–50 per cent of office uptake in 2025,” said Vimal Nadar, National Director and Head of Research, Colliers India.

Tech firms also drove demand in the flex space market, contributing 40–50 per cent of total flex leasing across the top seven cities. Flexible workspaces are enabling occupiers to support hybrid models, reduce costs, and attract top talent.

With Nasscom projecting India’s GCC count to rise from 1,800 today to over 2,400 by 2030, generating revenues of more than USD 100 billion, the technology sector is set to remain the largest occupier of Grade A office space. Emerging workplace strategies and advanced technologies like generative AI, machine learning, and cloud computing are expected to further drive leasing momentum in both conventional and flex spaces.

News source: BusinessWorld