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

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

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.

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.

Next Story
Infrastructure Energy

Private Sector Builds India’s First Heavy Water Test Facility

In a major stride towards nuclear self-reliance, India’s first privately built test facility for upgrading depleted heavy water has been commissioned by TEMA India Ltd. The facility was inaugurated by Shri Rajesh V, Director – Technical, Nuclear Power Corporation of India Ltd (NPCIL), and Shri K. T. Shenoy, Director, Chemical Engineering Group, BARC. Developed under a technology transfer from BARC and a purchase order from NPCIL, the unit represents a landmark in public-private collaboration and supports the government’s Atma-Nirbhar Bharat initiative.Previously, critical testing for hea..

Next Story
Infrastructure Energy

Coal Ministry Pushes Digital Drive With SWCS Training Session

In a bid to accelerate digital transformation in the coal sector, the Ministry of Coal conducted a hands-on training workshop and interactive session on the Exploration Module of the Single Window Clearance System (SWCS) on 25 July 2025. Held at Tagore Chamber, SCOPE Complex, New Delhi, the session aimed to deepen stakeholders’ understanding of the module’s functionalities and encourage its use for efficient exploration-related submissions and approvals.Ms Rupinder Brar, Additional Secretary and Nominated Authority (AS & NA), chaired the session and stressed the vital role digital plat..

Next Story
Infrastructure Urban

India Enhances Cyber Defences for Critical Infrastructure

The Government of India remains acutely aware of the cyber threats facing the country’s digital and physical infrastructure. Its policies are focused on fostering a safe, trusted, and accountable cyberspace for all users. Several initiatives are being implemented to strengthen cyber security across critical sectors such as power, transport, and banking, ensuring their continuous and secure operation.The Indian Computer Emergency Response Team (CERT-In) and the National Critical Information Infrastructure Protection Centre (NCIIPC) undertake cyber security audits under the Information Technol..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?