Office demand rises 15 pc in Jan-Mar in 7 major cities on higher demand from corporates Colliers

     New Delhi, Mar 27 (PTI) Office space leasing rose 15 per cent during January-March period to 159 lakh sq ft across seven major cities on higher demand from domestic and foreign companies, according to Colliers.
     The gross office leasing stood at 138 lakh sq ft in the year-ago period.
     Real estate consultant Colliers India on Thursday released the data for the India office market.
     As per the data, the gross leasing of office space in Bengaluru increased 13 per cent to 45 lakh square feet in the current quarter from 40 lakh square feet in the year-ago period.
     In Chennai, the gross leasing of workspace surged 93 per cent to 29 lakh square feet from 15 lakh sq ft.
     Office leasing in Delhi-NCR grew 32 per cent to 33 lakh sq ft from 25 lakh sq ft.
     Mumbai witnessed 16 per cent growth in office leasing to 22 lakh sq ft from 16 lakh sq ft.
     In Pune, the office leasing rose 50 per cent to 12 lakh sq ft from 8 lakh sq ft.
     However, the demand in Hyderabad and Kolkata was low.
     In Hyderabad, the leasing activities fell 41 per cent to 17 lakh sq ft from 29 lakh sq ft. Kolkata also saw 50 per cent decline in office leasing to 1 lakh sq ft during January-March 2025 from 2 lakh sq ft in the corresponding period a year earlier.
     Of the total 159 lakh sq ft leased during this quarter, 137 lakh sq ft area was leased directly to corporates. Technology companies, BFSI firms and engineering & manufacturing sector took 75 per cent of these 137 lakh sq ft on rent.
     The remaining 22 lakh sq ft office spaces were given on lease to co-working operators for setting up their centres and then further sub-renting to corporates and individuals.
     "Key markets are seeing strong Grade A space uptake, driven by corporate expansions, rising investments in commercial real estate, amidst promising domestic growth prospects," said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.
     He expects the demand momentum to gain pace throughout 2025, fuelled by expansionary plans of leading firms across technology, engineering & manufacturing and BFSI sectors.
     "Additionally, aided by the policy level push in major states, long-term demand for GCCs will continue to remain strong in most Tier-I and select Tier-II cities of the country," Mehrotra said.
     Commenting on the office demand, S K Sayal, MD & CEO of Bharti Real Estate, said, "The 15 per cent rise in office leasing across the top-seven cities is not just a statistical rebound -- it is a definitive indicator of how India's commercial real estate is recalibrating to meet the demands of a maturing economy."
     The shift from conventional spaces to ESG-compliant, tech-integrated, and experience-led workplaces signifies a deeper transformation, he added.
     Ashish Sharma, AVP Operations, Brahma Group, says, "India's commercial real estate sector is witnessing remarkable growth. Delhi-NCR has consistently led this surge, attracting high-quality leasing activity due to its world-class infrastructure, strategic location, and growing demand from global and domestic enterprises."

(This story has not been edited by THE WEEK and is auto-generated from PTI)