The leading 15 high-activity micro markets in India account for 65% of office demand and 76% of newly introduced supply.

India’s office real estate market is being influenced by 15 active micro markets in prominent cities such as Bengaluru, Delhi National Capital Region (NCR), Pune, Hyderabad, Chennai, and Mumbai. A recent report by Colliers, titled India Office: Micro Market Insights, indicates that these markets have accounted for two-thirds of the demand for office space and more than three-fourths of new supply since 2020. Each of these areas is expected to experience an annual demand and supply of over one million square feet (sq. ft.), significantly surpassing other markets by two to three times. From 2020 to Q1 2025, these zones absorbed 166.8 million sq. ft. of office space while adding 172.2 million sq. ft. of new supply, amounting to 76% of the total in India. Most of these locations are situated in secondary and peripheral business districts, which are gaining popularity among Global Capability Centres (GCCs) and providers of flexible workspaces. Since 2020, 73% of leasing by GCCs, roughly 70 million sq. ft., has been centered in the top 10 micro markets, particularly in Bengaluru’s Outer Ring Road (ORR) and Whitefield, Hyderabad’s Suburban Business District (SBD) and Off-SBD, as well as Chennai’s Old Mahabalipuram Road (OMR) Zone one and Madhya Kailash-Perungudi (MPR). Providers of flexible workspace have also targeted these hubs, representing 59% of the 38 million sq. ft. of flex space leased, with a 54% compound annual growth rate (CAGR) in this segment. The vacancy rate in India’s Grade A office stock is at 16.2%, though nearly 30% of the micro markets have vacancy rates below 10%. Prime areas such as the Central Business District (CBD) in Bengaluru, Guindy in Chennai, and Aerocity and Cybercity in Delhi NCR are maintaining resilience with increasing rental prices. Mumbai and Delhi NCR contain the most expensive locations, including Bandra Kurla Complex (BKC), Worli-Parabhadevi, and Golf Course Road. Out of the 488 million sq. ft. of Grade