IT Firms Boost India’s Office Space Demand in 2025, Pune Leads With 254% YoY Growth
India’s office leasing market is being powered by technology companies in 2025, with both conventional Grade A offices and flexible co-working spaces seeing strong demand. According to Colliers India, tech firms have been the single largest driver of leasing activity across major cities, led by the expansion of global capability centres (GCCs).
Overall Leasing Trends
- H1 2025 (Jan–Jun): Total gross leasing of conventional office space across Bengaluru, Pune, Delhi-NCR, Mumbai, Chennai, Hyderabad, and Kolkata stood at 27.2 million sq ft. Technology companies leased 10.8 million sq ft, representing 40% of conventional office demand.
- Flexible / co-working spaces: Co-working operators leased 6.5 million sq ft from property owners, with tech companies accounting for 40–50% of this demand.
First 9 Months 2025: Absorption and Sectoral Trends
- Total absorption (Jan–Sep): 50.9 million sq ft, an 8% year-on-year growth.
- GCC contribution: Nearly 20 million sq ft, around 40% of overall demand.
- Technology sector: 15.2 million sq ft leased, 36% of total leasing, a 24% YoY rise.
- BFSI sector: 8.1 million sq ft, 19% of demand.
- Consulting sector: Fastest-growing, 3.7 million sq ft leased, 42% YoY growth.
City-Wise Supply Additions in Q3 2025
- Pune: Led leasing growth with 4.7 million sq ft, up 254% from Q3 2024.
- Bengaluru: Added 4.0 million sq ft.
- Delhi-NCR: Added 3.1 million sq ft.
- Mumbai & Chennai: Both recorded at least 40% YoY demand growth.
Co-Working and Flexible Workspaces
Technology companies continue to adopt hybrid work models, driving demand for flexible office spaces. Co-working operators are expanding rapidly, leasing large spaces from property owners and catering largely to tech occupiers.
Market Outlook
Arpit Mehrotra, Managing Director – Office Services at Colliers India, said:
“Despite global headwinds, technology occupiers are expected to maintain leasing momentum throughout 2025. India’s strong IT talent pool and cost advantages will continue to attract GCC expansions.”
Colliers estimates that India’s Grade A office market could reach 70 million sq ft of leasing by year-end 2025, with technology firms remaining the largest growth driver.
