Leasing activity across India’s top seven office markets has continued to remain upbeat in the first three quarters of 2025, driven by GCCs that have already leased close to 20 million sq. ft in 2025, which is around 40% of the overall office space demand. Despite ongoing external volatilities and trade frictions, the space uptake for the year has reached 50.9 million sq. ft, marking an 8% YoY growth. However, quarterly, it dipped marginally to 17.2 million sq. ft in Q3 2025, according to the latest report by real estate investment management company Colliers.

While Bengaluru continued to drive overall transaction volumes in the third quarter, Pune, Mumbai, and Chennai particularly witnessed high demand traction. The three cities accounted for over half of the quarterly Grade A office space uptake. Each saw a YoY demand growth of at least 40% in Q3 2025.

In terms of 9-month space uptake, Bengaluru retained its dominance with 14 million sq. ft of leasing and 27% share in the overall India office space demand. Interestingly, Grade A space uptake has been more evenly balanced in Chennai, Delhi-NCR, Hyderabad, Mumbai, and Pune. Each has seen leasing activity to the tune of 6–8 million square feet in 2025, underscoring the momentum across most major cities of the country.

“This steady momentum has been fuelled by a surge in space uptake by GCCs and continued traction in leasing activity from domestic firms. GCCs have already leased close to 20 million sq. ft. in 2025 across the top seven cities, contributing around 40% of the overall office space demand,” said Arpit Mehrotra, MD, Office Services, India, Colliers.

Mehrotra says going forward, although occupiers are likely to carefully evaluate evolving scenarios, global technology firms will continue to bolster Grade A space uptake.

Reacting to the latest leasing data by Colliers, Ranjan Chopra, Chairman & MD at IT infrastructure and information solutions provider Team Computers says it’s incredible to see GCC-driven office space demand cross 50 mn sq. ft in just the first nine months of 2025. “To us, this isn’t just about office real estate; it’s a reflection of how India is cementing its place at the heart of global business transformation. Enterprises are no longer limiting themselves to Bengaluru and Hyderabad; we’re seeing Tier II cities emerge as serious contenders, thanks to the talent and infrastructure they now offer.”

Bengaluru, Pune top new supply in 2025

New supply across the top seven office markets remained robust in Q3 2025, with 16.6 million square feet of completions, marking a 15% YoY increase. Pune led the momentum with a nearly 4X surge in quarterly completions at 4.6 million square feet, followed by Bengaluru and Delhi-NCR. New supply reached 41.4 million square feet in the first 9 months of 2025, with Bengaluru and Pune together contributing 54% of the new supply. 

Quarterly, conventional spaces accounted for 84% of the 17.2 million square feet of Grade A office space uptake in Q3 2025. “Office space demand in Q3 2025 was driven by technology sector occupiers and BFSI firms, which cumulatively drove nearly 60% of the conventional space uptake. Overall, the preference for agile workplace strategies and flex space adoption continues to be on the upswing across India and can potentially account for one-fifth of the overall demand in 2025,” said Vimal Nadar, national director and head of research, Colliers India.

Vacancy levels remain rangebound

Despite office space demand exceeding new supply across most cities in Q3 2025, vacancy levels remained rangebound on account of relocations and churns. While vacancy levels at the India level remained steady at 16.4%, Pune and Delhi-NCR witnessed a rise in vacancy levels by over 100 basis points every quarter, owing to significant new completions. Meanwhile, average rentals continued their upward trajectory across major markets.