Tech sector powers 40% of India's office leasing in H1 2025, Bengaluru tops

· Over half of the total leasing across the top 7 cities led by large-sized deals

 India’s commercial office market is being anchored by the technology sector, which drove nearly 40% of all Grade A conventional office leasing in the first half of 2025, according to data from Colliers India. Large-sized transactions of 100,000 sq. ft. or more continued to dominate the market, accounting for 51% of total leasing across the top seven cities. 

Trends in office leasing across deal sizes (2020- H1 2025)

In H1 2025, the sector accounted for more than 10 million sq ft of Grade A space uptake across the top 7 cities, nearly 40% of the overall conventional leasing.

• Source: Colliers 
• Note: Percentages represent the share of total annual leasing activity in each deal size category in the respective year. Data includes leasing across conventional space as well as flex space
• Data petains to Grade A buildings only. 
• Data pertains to top 7 cities – Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, and Pune | Kolkata data limited for 2020-23 period 

Large-Sized Deals Remain the Market’s Backbone

In H1 2025, 17.2 million sq. ft. of the total 33.7 million sq. ft. gross leasing came from large-sized deals — a pattern that has held steady for the past five years. Tech occupiers led the pack, contributing 43% of all large-sized conventional transactions, followed by BFSI companies at 28%.

 

The tech sector’s large-sized leasing has risen steadily — from 6.4 million sq. ft. in 2023 to 8.7 million sq. ft. in 2024, with 6.2 million sq. ft. already signed in H1 2025.

 

“Since 2020, tech occupiers have leased close to 85 million sq. ft. of conventional office space and continue to drive India’s large-sized office transactions. The expansion of GCCs, coupled with AI-led digital transformation, will keep momentum high,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.

 

Bengaluru & Hyderabad Dominate Tech Leasing

Together, Bengaluru and Hyderabad accounted for nearly 50% of all tech leasing over the past five years.

 

Bengaluru: 3.0 million sq. ft. of tech leasing in H1 2025 (28% share)

 

Hyderabad: 2.3 million sq. ft. (21% share)

 

They are followed by Pune, Chennai, and Delhi-NCR, which continue to attract consistent demand from technology companies.

 

Top Tech Hubs Continue to Pull Occupiers

Five micro-markets — ORR & Whitefield (Bengaluru), SBD & Off-SBD (Hyderabad), and OMR Zone (Chennai) — accounted for nearly half of all tech leasing in India in H1 2025.

 

“These hubs have weathered market shifts and set the pace for India’s office sector. With AI, cloud computing, and cybersecurity driving expansion, tech could account for 40-50% of office space uptake in 2025,” said Vimal Nadar, National Director & Head of Research, Colliers India.

 

Flex Space Demand from Tech Firms Stays Strong

Tech occupiers also account for 40–50% of flex space demand, particularly in Bengaluru, Hyderabad, and Pune. Flexible workspace strategies are helping companies optimize costs, adopt hybrid models, and attract skilled talent. 

Trends in Pan India office leasing (2020 - H1 2025)

Source: Colliers Note: Data pertains to Grade A buildings only.

 

Structural Shift in Indian IT Real Estate

As per NASSCOM, India’s GCC count is projected to rise from ~1,800 currently to over 2,400 by 2030, generating USD 100+ billion in revenues. This expansion, along with a shift toward AI, machine learning, and cloud-first operations, is expected to reshape real estate requirements. 

Trends in conventional leasing by Technology sector across key markets' 

Majority of leading technology micro-markets in the country are concentrated in South India, which has established IT hubs such as ORR & Whitefield in Bengaluru, SBD & Off-SBD in Hyderabad, and OMR Zone in Chennai. These micro markets have consistently witnessed strong traction in technology leasing, driven by an established IT/ITeS ecosystem, well-developed social & physical connectivity and availability of skilled talent in residential catchment areas. Competitive rentals and availability of relatively larger floor plates in office developments have added to the forward-looking IT policies of these states in southern India.

 

"India’s technology leasing continues to be dominated by select high-performing IT hubs. In H1 2025, the top micro-markets - ORR & Whitefield in Bengaluru, SBD and Off-SBD in Hyderabad, and OMR Zone in Chennai, accounted for nearly half of India’s total tech leasing, a clear testament to their unmatched pull amongst IT occupiers. These hubs have not only weathered market shifts but have set the pace for India’s office sector.  The Indian technology sector is experiencing significant growth and transformation, driven by trends like AI adoption, cloud computing and cybersecurity. Ongoing innovation and global servicing capabilities are likely to remain unmatched, with the sector potentially accounting for 40-50% of the office space uptake in 2025,” said Vimal Nadar, National Director and Head of Research, Colliers India. 

Noe: Data pertains to Grade A buildings only | Kolkata data limited for 2020-23 period. Gross absorption does not include lease renewals, pre-commitments and deals where only a letter of Intent has been signed. Percentage indicates share of the res