India Grade A Office Leasing Surges 6 Pc To Cross 71 Mn Sq Ft In 2025

(MENAFN- IANS) New Delhi, Dec 24 (IANS) India's Grade A office leasing across the top seven cities reached 71.5 million sq ft in 2025, marking a 6 per cent year-on-year growth, a report said on Wednesday.

The report from Colliers said the robust leasing was driven by strong occupier demand, strong economic growth, expanding Global Capability Centers and a preference for high‐quality assets.

Bengaluru led the office market with 22.1 million sq ft of leasing, nearly one‐third of pan‐India demand, while Delhi NCR, Hyderabad, Chennai and Mumbai each recorded close to or over 10 million sq ft.

It reflected occupiers' expanding real estate footprint across multiple markets and adding credence to the strong multi-city demand narrative.

A strong fourth quarter provided the decisive push, with all‐time high quarterly leasing of 20.6 million sq ft, marking a 20 per cent surge from the prior quarter, led by Bengaluru's record 8.1 million sq ft and Delhi NCR's 4.2 million sq ft.

These two cities together accounted for nearly 60 per cent of Q4 activity, highlighting large deal closures and occupier expansion, the report noted.

“With continued demand from GCCs, technology & BFSI firms and flex space operators, alongside a clear flight-to-quality, the office market outlook remains positive. Going ahead, we expect leasing activity to remain robust in 2026, supported by demand scale-up across major cities, increasing adoption of flexible and managed workspace solutions, and high traction in sustainable buildings,” said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.

Conventional office uptake totalled 58.5 million sq ft in 2025, up 7 per cent, while flex space uptake reached 13 million sq ft, about 18 per cent of total leasing.

Office space demand continued to remain diversified in 2025, with around 25 million sq ft of conventional space or 40 per cent of uptake across BFSI, engineering & manufacturing, and consulting firms.

New supply across the top cities rose 5 per cent to 56.5 million sq ft, with Bengaluru, Hyderabad and Pune, together accounting for nearly 70 per cent of completions.

MENAFN24122025000231011071ID1110520298