Office leasing for Grade A spaces increased by 11% in the second quarter of calendar year 2025.

Leasing of Grade A office space in India's top seven cities increased by 11% year-over-year to reach 17.8 million square feet (msf) in the second quarter of calendar year 2025, as reported by real estate consultancy Colliers. This growth was fueled by strong demand from flexible workspace providers and companies in the technology, Banking, Financial Services, and Insurance (BFSI), engineering, and manufacturing industries. Bengaluru continued to lead with 4.8 msf of leasing activity, while Hyderabad, Mumbai, and Chennai each surpassed 2.5 msf during the quarter. In the first half of CY25, overall performance indicated demand reached 33.7 msf, reflecting a 13% increase compared to the previous year, demonstrating ongoing confidence among occupiers despite global challenges. Flexible workspaces represented 4.3 msf, whereas traditional leasing amounted to 13.5 msf, primarily driven by technology companies, which leased 6.4 msf of space, marking a significant 42% increase due to the expansion of Global Capability Centres (GCC). Total supply rose by 11% year-on-year to 14.9 msf, although cities such as Delhi National Capital Region (NCR), Mumbai, Kolkata, and Hyderabad experienced a decline in supply. The nationwide office vacancy rate remained consistent at 16.2%, with higher figures noted in Pune and Hyderabad due to substantial completions.