Curation Team
NEW DELHI: Demand for office space remained strong during January-March period as gross leasing rose 15 per cent to 159 lakh square feet across seven major cities, according to Colliers. The gross office leasing stood at 138 lakh square feet in the year-ago period.
Real estate consultant Colliers India on Thursday released the data for India office market.
As per the data, the gross leasing of office space in Bengaluru increased 13 per cent to 45 lakh square feet in the current quarter from 40 lakh square feet in the year-ago period.
In Chennai, the gross leasing of workspace surged 93 per cent to 29 lakh square feet from 15 lakh square feet.
Office leasing in Delhi-NCR grew 32 per cent to 33 lakh square feet from 25 lakh square feet.
Mumbai witnessed 16 per cent growth in office leasing to 22 lakh square feet from 16 lakh square feet.
In Pune, the office leasing rose 50 per cent to 12 lakh square feet from 8 lakh square feet.
However, the demand in Hyderabad and Kolkata was low.
In Hyderabad, the leasing activities fell 41 per cent to 17 lakh square feet from 29 lakh square feet.
Kolkata also saw 50 per cent decline in office leasing to 1 lakh square feet during January-March 2025 from 2 lakh square feet in the corresponding period of 2024 calendar year.
Gross leasing or absorption does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed.
Out of the total 159 lakh square feet leased during this quarter, 137 lakh square feet area was leased directly to corporates.
The remaining 22 lakh square feet office spaces were given on lease to co-working operators for setting up their centres and then further sub-renting to corporates and individuals.
Technology companies, BFSI firms and engineering & manufacturing sector are major drivers of office demand in India.
“Key markets are seeing strong Grade A space uptake, driven by corporate expansions, rising investments in commercial real estate, amidst promising domestic growth prospects,” said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.
He expects the demand momentum to gain pace throughout 2025, fuelled 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,” Mehrotra said.
