India’s office space demand, primarily driven by Global Capability Centres (GCCs), rose 8% year-over-year during the first nine months of 2025, reaching 50.9 million square feet, according to a report released Thursday by real estate services firm Colliers, as published by The Economic Times.
Bengaluru maintained its position as the leading city for office space transactions during the July-September quarter. However, Pune, Mumbai, and Chennai recorded notable growth, with each city posting at least a 40% increase in demand compared to the same period last year. Combined, the three cities contributed over half of the quarterly Grade A office space absorption.
Bengaluru alone accounted for 14 million square feet of leasing activity during the period, capturing a 27% share of India’s total office demand.
“India’s office market continues to demonstrate resilience, crossing the 50 million square feet benchmark in the first nine months of the year, despite ongoing external volatilities and trade frictions,” said Arpit Mehrotra, managing director for office services at Colliers India.
The report noted that GCCs leased nearly 20 million square feet so far this year across the top seven cities, accounting for about 40% of total office demand. Domestic companies have also contributed to sustained leasing momentum.
Looking ahead, Mehrotra said global technology firms are expected to remain key drivers of office space growth, with total demand projected to reach around 70 million square feet by the end of 2025.
New office completions across the top seven Indian cities hit 16.6 million square feet in the third quarter, reflecting a 15% rise from the previous year. Pune led the supply expansion, posting nearly a fourfold jump in new completions at 4.6 million square feet, followed by Bengaluru and Delhi-NCR.
Traditional leasing stood at 41.7 million square feet through September, driven largely by technology and banking, financial services, and insurance (BFSI) sectors.
In the flexible workspace segment, Bengaluru, Pune, and Chennai accounted for nearly two-thirds of the total flex space absorption in Q3.
“The demand for agile workplace strategies and flexible workspaces continues to gain traction across India and could represent up to 20% of overall office demand in 2025,” said Vimal Nadar, national director and head of research at Colliers India.