Office Leasing in Q1 Rises 15% YoY to 15.9 mn Sq Ft

28 Mar 2025 CW Team

“2025 has started on a positive note, with office leasing witnessing a commendable 15 per cent year-on-year growth at 15.9 million square feet in the first quarter. Key markets are seeing strong Grade A space uptake, driven by corporate expansions, rising investments in commercial real estate, amidst promising domestic growth prospects. We anticipate the demand momentum to gain pace throughout 2025, fueled by expansionary plans of leading firms across Technology, Engineering & Manufacturing and BFSI sectors. Additionally, aided by the policy level push in major states, long-term demand for GCCs will continue to remain strong in most Tier I and select Tier II cities of the country”, says Arpit Mehrotra, Managing Director, Office Services, India, Colliers.

With demand outpacing new supply across most cities, average office rentals increased annually by 8 per cent during Q1 2025. Amidst limited new supply, growth in rentals was higher in select high activity micro markets such as BKC & Andheri East in Mumbai, SBD (Madhapur, HITEC City, Kondapur & Rai Durg) in Hyderabad and NH 48 & Golf Course Extension Road in Delhi NCR. At the India level, vacancy levels meanwhile dropped by 120 basis points on an annual basis to 16.2 per cent. This was a 55 basis points decline on a sequential basis. Of the 15.9 million square feet of Grade A office space demand in Q1 2025, 86 per cent came from conventional workspaces. Flex space leasing, meanwhile, at 2.2 million square feet witnessed a 22 per cent YoY growth.

Office leasing across the top seven markets remained strong in Q1 2025 at 15.9 million sq ft, reflecting a 15 per cent year-on-year (YoY) increase. Ongoing demand momentum has added credibility to the prevailing optimism in the office market of the country. Bengaluru and Delhi NCR together drove nearly half of the leasing activity during the quarter. While Delhi NCR saw its highest quarterly leasing in the last 10 quarters, Chennai too witnessed a remarkable 93 per cent YoY surge at 2.9 million square feet, driven by space take-up by technology firms. This sustained demand growth underscores the continued resilience of the country’s top seven markets, namely Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune. “2025 has started on a positive note, with office leasing witnessing a commendable 15 per cent year-on-year growth at 15.9 million square feet in the first quarter. Key markets are seeing strong Grade A space uptake, driven by corporate expansions, rising investments in commercial real estate, amidst promising domestic growth prospects. We anticipate the demand momentum to gain pace throughout 2025, fueled by expansionary plans of leading firms across Technology, Engineering & Manufacturing and BFSI sectors. Additionally, aided by the policy level push in major states, long-term demand for GCCs will continue to remain strong in most Tier I and select Tier II cities of the country”, says Arpit Mehrotra, Managing Director, Office Services, India, Colliers. With demand outpacing new supply across most cities, average office rentals increased annually by 8 per cent during Q1 2025. Amidst limited new supply, growth in rentals was higher in select high activity micro markets such as BKC & Andheri East in Mumbai, SBD (Madhapur, HITEC City, Kondapur & Rai Durg) in Hyderabad and NH 48 & Golf Course Extension Road in Delhi NCR. At the India level, vacancy levels meanwhile dropped by 120 basis points on an annual basis to 16.2 per cent. This was a 55 basis points decline on a sequential basis. Of the 15.9 million square feet of Grade A office space demand in Q1 2025, 86 per cent came from conventional workspaces. Flex space leasing, meanwhile, at 2.2 million square feet witnessed a 22 per cent YoY growth.

Real Estate

07 Oct 2025

Maharashtra Sets Up Authority to Boost Self-Redevelopment

The Maharashtra government has established a Self-Redevelopment Authority to support citizens in independently redeveloping old buildings, marking a major policy step for Mumbai and the surrounding metropolitan region.BJP legislator and Mumbai District Central Cooperative Bank president Pravin Darekar will head the new Authority, which will offer end-to-end guidance on project planning, funding, developer selection, and execution. The initiative follows the approval of the state’s New Housing Policy earlier this year, which allocated Rs 2,000 crore to promote self-redevelopment.Officials sai..

Real Estate

07 Oct 2025

MHADA Revises Premium and Payment Rules for Redevelopment

The Maharashtra Housing and Area Development Authority (MHADA) has revised its 2007 redevelopment policy to make the redevelopment of ageing housing societies in Mumbai financially sustainable.The key change involves recalibrating premium charges for commercial floor space in projects under Regulation 33(5) of DCPR 2034. The new formula links premium rates to land value, market rate, and proposed usage, replacing the earlier rule that charged 1.5 times the residential rate for commercial areas.Developers’ body CREDAI-MCHI had sought parity between residential and commercial rates to encourag..

Real Estate

07 Oct 2025

Delhi-NCR Records Highest 24% Rise in Housing Prices

Delhi-NCR’s primary housing market witnessed a 24 per cent year-on-year rise in average prices during the July–September quarter, driven by sustained demand for luxury homes, according to data from real estate consultancy Anarock.Average residential prices in the region increased to Rs 8,900 per sq ft from Rs 7,200 per sq ft a year ago. Among India’s top seven cities, Delhi-NCR saw the sharpest price appreciation, followed by Bengaluru (10 per cent) and Hyderabad (8 per cent).Developers attribute the rise to new infrastructure projects such as the Dwarka Expressway and Noida Internationa..