Colliers Report: Demand for Office-space may rise 5% in Top 6 cities

According to Colliers India, the demand for office space in the top six Indian cities is predicted to be high this year, with gross lease transactions of between 650 and 700 lakh square feet.

In 2024, the gross lease of office space in Delhi-NCR, Mumbai, Bengaluru, Pune, Hyderabad, and Chennai reached a record 664 lakh square feet.

At the FICCI 18th Real Estate Summit held here on Tuesday, real estate consultant Colliers India unveiled their study titled "India Office: Setting New Standards for 2025."

In recent years, the office market has broken new milestones thanks to a notable increase in office supply and leasing across India's top six cities.

Increased activity is anticipated in Hyderabad and Delhi-NCR, with each city seeing 10–15 million (100–150 lakh) square feet of leasing activity.

In 2025, the need for Grade A office space in Mumbai, Chennai, and Pune is anticipated to be 5–10 million (50–100 lakh) square feet apiece.

"The scale-up, mainly driven by evolving occupier preferences is likely to gain further momentum, with gross leasing across the top six cities projected to reach 65-70 million (650-700 lakh) sq ft in 2025," the consultant said.

“The surge in overall leasing volume is likely to be driven by diversification of occupier base, continued expansion of Global Capability Centers (GCCs) and business optimism amid domestic occupiers”, it added.

Peush Jain, MD-Commercial Leasing and Advisory, Anarock Group says,

"GCCs have emerged as the largest office occupiers in top metro cities. In 2025, GCC and IT/ITeS expansion in Tier-1 and Tier-2 cities will be the key growth driver of office demand.
 
The demand from Global Capability Centers (GCCs) is expected to remain strong. India’s cost-effectiveness, skilled workforce, and operational efficiency make it a preferred destination for GCCs across industries like BFSI, healthcare, technology, and R&D.

ANAROCK has played a pivotal role in GCC leasing transactions and anticipates sustained demand as companies seek to diversify and de-risk operations by shifting critical functions to India.

The Budget announcement on the formulation of national framework on GCCs will not just smoothen but also expedite the entry of GCCs in emerging markets by enabling availability of skilled workforce, strengthening of urban infrastructure and creation of new office supply.

 Real estate developers will be prompted to not just enter these markets but also create high quality spaces in accordance with the requirements of GCCs."