India’s commercial real estate sector is set for a major expansion, with office leasing across the country’s top six cities projected to reach 65-70 million square feet in 2025, according to a new report by real estate consultancy Colliers.
Some of the key trends forming this growth include:
Bengaluru Leads Demand
- Likely to contribute one-third of total leasing.
- GCCs, engineering, manufacturing, and flex space operators to drive demand.
Hyderabad & Delhi NCR Gaining Momentum
- Leasing estimated at 10-15 million sq ft each.
- 5-10% above last year.
Mumbai, Chennai & Pune Remain Top Hubs
- BFSI companies, engineering & manufacturing industries and flex space operators continue to favor these cities.
- 5-10 million sq ft Grade A office space demand in each city.
Emerging Trends 2025
GCC Expansion-led Growth
- GCC Leasing up 41% YoY in 2024 (25.7 million sq ft).
- Expected to reach 30 million sq ft by 2025, accounting for 40% of total demand.
- Bengaluru & Hyderabad among the top preferences, with US-based firms leading the expansion.
Flex Space Operators on the Rise
- Expected to account for 20% of total leasing activity.
- Demand driven by hybrid work models and increasing preference for agile workspaces.
Sustainability & REITs Driving Change
- Increasing occupier preference for green-certified and energy-efficient office spaces.
- REITs gaining traction, pushing developers towards high-quality, sustainable real estate portfolios.
The Future of Commercial Real Estate in India
With business optimism, occupier diversification, and GCC expansion in full swing, India’s office market is slowly but surely changing from a supply-led to an occupier-driven market. Developers are now working toward the adaptation, setting new bench marks for the future of the country’s office spaces.
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