Office leasing across India looks promising for next one year or so

If morning shows the day, office leasing in the leading markets across the country looks extremely positive and promising.

- RITWIK MUKHERJEE

Office leasing across the top seven markets remained strong in Q1 2025 at 15.9 million sq ft, reflecting a 15 per cent year-on-year (YoY) increase.

With demand outpacing new supply across most cities, average office rentals increased annually by 8 per cent during Q1 2025. Amidst limited new supply, growth in rentals was higher in select high-activity micro markets such as BKC & Andheri East in Mumbai, SBD (Madhapur, HITEC City, Kondapur & Rai Durg) in Hyderabad and NH 48 & Golf Course Extension Road in Delhi NCR. At least that's what the latest study by Colliers India suggests.

Significantly, ongoing demand momentum has added credibility to the prevailing optimism in the office market of the country. Bengaluru and Delhi NCR together drove nearly half of the leasing activity during the quarter. While Delhi NCR saw its highest quarterly leasing in the last 10 quarters, Chennai too witnessed a remarkable 93 per cent YoY surge at 2.9 million square feet, driven by space take-up by technology firms.