Office space leasing demand falls in Hyd

Office space leasing across India’s top seven cities rose 6 per cent to 71.5 million square feet this year on better demand from domestic and foreign companies, according to Colliers.

Real estate consultant Colliers India on Wednesday noted that the office demand is expected to remain robust next year, driven by growth in technology and BFSI (Banking, Financial Services, and Insurance) sectors.

As per the data, the gross leasing of Grade A office spaces is estimated to have increased to 71.5 million square feet this year across seven major cities from 67.2 million square feet in the 2024 calendar year.

The demand fell in Mumbai and Hyderabad, but increased in the other five cities -- Chennai, Bengaluru, Pune, Kolkata and Delhi-NCR.

Gross absorption does not include lease renewals, pre-commitments and deals where only a letter of Intent has been signed.

“India’s office market continues to scale up and set new highs every passing year,” said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.

According to the data, office space leasing in Bengaluru increased by 2 per cent to 22.1 million square feet this year, up from 21.7 million square feet in the 2024 calendar year.

Chennai saw a 41 per cent increase in leasing to 9.6 million square feet from 6.8 million square feet.

Leasing of office spaces in Delhi-NCR rose 16 per cent to 11.3 million square feet from 9.7 million square feet.

Kolkata witnessed a 38 per cent growth in leasing to 1.1 million square feet from 0.8 million square feet.

The demand for office space in Pune remained strong this year, with leasing rising by 37 per cent to 7.8 million square feet from 5.7 million square feet in the preceding year.