Grade A office leasing up 11% in Q2 CY25, led by flex space demand: Report

Gross Grade A office leasing in India’s top seven cities rose 11% YoY to 17.8 million square feet (msf) in Q2 CY25, according to real estate consultancy Colliers. The growth was driven by robust demand from flexible space operators and occupiers in the technology, Banking, Financial Services, and Insurance (BFSI), engineering, and manufacturing sectors. Bengaluru maintained its lead with 4.8 msf of leasing activity, while Hyderabad, Mumbai, and Chennai each crossed 2.5 MSF during the quarter. 
In terms of overall performance, demand in H1 CY25 reached 33.7 msf, up 13% from the year before, signalling sustained occupier confidence despite global uncertainties. Flexible workspaces accounted for 4.3 msf, while conventional leasing hit 13.5 msf, led by technology firms, which alone leased 6.4 msf of space, marking a 42% rise driven by Global Capability Centre (GCC) expansion. Total supply grew 11% YoY to 14.9 msf, though cities like Delhi National Capital Region (NCR), Mumbai, Kolkata, and Hyderabad witnessed a supply dip. The pan-India office vacancy rate held steady at 16.2%, with higher levels in Pune and Hyderabad due to large completions.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.