India’s top 15 high-activity micro markets drive 65% of office demand, 76% of new supply

India’s office real estate sector is being shaped by 15 high-activity micro markets across major cities, including Bengaluru, Delhi National Capital Region (NCR), Pune, Hyderabad, Chennai, and Mumbai. According to Colliers’ latest report, India Office: Micro Market Insights, these markets have contributed to two-thirds of office space demand and over three-fourths of new supply since 2020. Each is projected to witness annual demand and supply of over one million square feet (sq. ft.), significantly outperforming other markets by two to three times. Between 2020 and Q1 2025, these zones absorbed 166.8 million sq. ft. of office space and added 172.2 million sq. ft. of new supply, 76% of India’s total. Most are in secondary and peripheral business districts, increasingly favoured by Global Capability Centres (GCCs) and flexible workspace providers.
Since 2020, 73% of GCC leasing, around 70 million sq. ft., was concentrated 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, and Chennai’s Old Mahabalipuram Road (OMR) Zone one and Madhya Kailash-Perungudi (MPR). Flex space operators have also focused on these hubs, accounting for 59% of the 38 million sq. ft. of flex leasing, with a 54% compound annual growth rate (CAGR) in the segment. Vacancy in India’s Grade A office stock stands at 16.2%, though nearly 30% of the micro markets operate below 10% vacancy. Prime zones like Central Business District (CBD) in Bengaluru, Guindy in Chennai, and Aerocity and Cybercity in Delhi NCR remain resilient with rising rentals. Mumbai and Delhi NCR host the costliest locations, including Bandra Kurla Complex (BKC), Worli-Parabhadevi, and Golf Course Road. Of the 488 million sq. ft. of Real Estate Investment Trusts (REIT) worthy Grade A stock in India, 56% lies within the top 10 micro markets, with 72% either listed or REIT-ready. India’s cost-effective rentals and growing infrastructure continue to attract global occupiers aiming for consolidation and scale.

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