Bengaluru: India’s commercial office market continues to ride on the back of large-sized transactions, with deals over 100,000 sq. ft. driving the bulk of Grade A space uptake for the past five years. In the first half of 2025 (H1 2025), such transactions accounted for 51% of the total leasing activity across the top seven cities, translating into 17.2 million sq. ft., according to Colliers’ latest report. This trend underscores occupiers’ sustained appetite for high-quality, scalable office spaces aligned with their long-term growth strategies.
Currently, the technology sector remains the leading driver of office space leasing in India with companies like Amazon, Qualcomm, Salesforce and TCS signing large floor plates Since 2020. In H1 2025 alone, tech occupiers took up more than 10 million sq. ft. of Grade A office space—nearly 40% of the total conventional leasing across the top seven cities.
Leasing volumes for such deals in conventional office spaces grew from 6.4 million sq. ft. in 2023 to 8.7 million sq. ft. in 2024. Already, H1 2025 has clocked 6.2 million sq. ft. of large-sized tech leasing, signaling sustained expansion. This growth is being fuelled by the rapid expansion of Global Capability Centres (GCCs), the adoption of artificial intelligence-led digital transformation, and long-term confidence in India’s talent base and infrastructure, mentioned the report.
Tech occupiers are also prominent players in the flexible workspace segment. The sector accounts for 40–50% of total flex space demand across the top seven cities. In IT hubs like Bengaluru, Hyderabad, and Pune, flexible work arrangements enable companies to optimize costs, maintain scalability, and attract top talent. While the overall occupier profile for flex spaces is diversifying, technology firms are expected to remain the dominant force, ensuring consistent demand in the years ahead.
“The technology sector continues to demonstrate remarkable resilience, even amid global uncertainties and workforce adjustments,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India. “Since 2020, tech occupiers have leased close to 85 million sq. ft. of conventional office space across the top seven cities, accounting for the majority of large-sized transactions. In H1 2025 alone, the sector drove 43% of such deals. With GCC expansions and India’s strong IT talent pool, we expect leasing momentum to remain strong through 2025.”
South India remains the epicentre of technology leasing, with established hubs such as Outer Ring Road (ORR) and Whitefield in Bengaluru, SBD and Off-SBD in Hyderabad, and the OMR Zone in Chennai consistently attracting major occupiers. These micro-markets offer a combination of advantages—robust IT/ITeS ecosystems, superior connectivity, abundant talent pools in nearby residential catchments, competitive rentals, and the availability of large floor plates, it said.
“India’s technology leasing continues to be concentrated in select high-performing IT hubs,” said Vimal Nadar, National Director and Head of Research, Colliers India. “In H1 2025, ORR and Whitefield in Bengaluru, SBD and Off-SBD in Hyderabad, and OMR in Chennai together accounted for nearly half of India’s total tech leasing. These hubs have set the pace for the country’s office market. With ongoing AI adoption, cloud computing, and cybersecurity innovations, the tech sector could account for 40–50% of overall office space uptake in 2025.”
The Indian IT industry is in the midst of a structural transformation. Global tech companies are increasingly expanding their India presence, not just for cost efficiency but to establish knowledge and innovation hubs that drive global operations. According to NASSCOM, the number of GCCs in India is projected to rise from around 1,800 today to over 2,400 by 2030, with revenues expected to exceed $ 100 billion.
Domestic IT firms, meanwhile, are evolving their service offerings as artificial intelligence, machine learning, generative AI, and cloud technologies become deeply embedded in the industry’s operational fabric. This evolution is redefining real estate requirements for the sector. From traditional large office setups to hybrid and flex models, the configuration of tech workplaces is shifting to accommodate new ways of working, enhanced collaboration, and global delivery capabilities.
The coming years are expected to be pivotal. As global enterprises double down on their India strategies and domestic players scale up capabilities, demand for high-quality Grade A office space will remain robust. The synergy of cost advantages, a vast and skilled workforce, policy support, and world-class office infrastructure positions India as a preferred destination for technology occupiers.
If the first half of 2025 is any indication, the technology sector’s dominance in India’s office leasing market is far from waning. With large-sized deals continuing to anchor leasing momentum and innovation hubs expanding at a rapid pace, the sector looks set to remain the cornerstone of India’s commercial real estate growth story for years to come.
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Leasing volumes for such deals in conventional office spaces grew from 6.4 million sq. ft. in 2023 to 8.7 million sq. ft. in 2024. Already, H1 2025 has clocked 6.2 million sq. ft. of large-sized tech leasing, signaling sustained expansion. This growth is being fuelled by the rapid expansion of Global Capability Centres (GCCs), the adoption of artificial intelligence-led digital transformation, and long-term confidence in India’s talent base and infrastructure, mentioned the report.
Tech occupiers are also prominent players in the flexible workspace segment. The sector accounts for 40–50% of total flex space demand across the top seven cities. In IT hubs like Bengaluru, Hyderabad, and Pune, flexible work arrangements enable companies to optimize costs, maintain scalability, and attract top talent. While the overall occupier profile for flex spaces is diversifying, technology firms are expected to remain the dominant force, ensuring consistent demand in the years ahead.
“The technology sector continues to demonstrate remarkable resilience, even amid global uncertainties and workforce adjustments,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India. “Since 2020, tech occupiers have leased close to 85 million sq. ft. of conventional office space across the top seven cities, accounting for the majority of large-sized transactions. In H1 2025 alone, the sector drove 43% of such deals. With GCC expansions and India’s strong IT talent pool, we expect leasing momentum to remain strong through 2025.”
South India remains the epicentre of technology leasing, with established hubs such as Outer Ring Road (ORR) and Whitefield in Bengaluru, SBD and Off-SBD in Hyderabad, and the OMR Zone in Chennai consistently attracting major occupiers. These micro-markets offer a combination of advantages—robust IT/ITeS ecosystems, superior connectivity, abundant talent pools in nearby residential catchments, competitive rentals, and the availability of large floor plates, it said.
“India’s technology leasing continues to be concentrated in select high-performing IT hubs,” said Vimal Nadar, National Director and Head of Research, Colliers India. “In H1 2025, ORR and Whitefield in Bengaluru, SBD and Off-SBD in Hyderabad, and OMR in Chennai together accounted for nearly half of India’s total tech leasing. These hubs have set the pace for the country’s office market. With ongoing AI adoption, cloud computing, and cybersecurity innovations, the tech sector could account for 40–50% of overall office space uptake in 2025.”
The Indian IT industry is in the midst of a structural transformation. Global tech companies are increasingly expanding their India presence, not just for cost efficiency but to establish knowledge and innovation hubs that drive global operations. According to NASSCOM, the number of GCCs in India is projected to rise from around 1,800 today to over 2,400 by 2030, with revenues expected to exceed $ 100 billion.
Domestic IT firms, meanwhile, are evolving their service offerings as artificial intelligence, machine learning, generative AI, and cloud technologies become deeply embedded in the industry’s operational fabric. This evolution is redefining real estate requirements for the sector. From traditional large office setups to hybrid and flex models, the configuration of tech workplaces is shifting to accommodate new ways of working, enhanced collaboration, and global delivery capabilities.
The coming years are expected to be pivotal. As global enterprises double down on their India strategies and domestic players scale up capabilities, demand for high-quality Grade A office space will remain robust. The synergy of cost advantages, a vast and skilled workforce, policy support, and world-class office infrastructure positions India as a preferred destination for technology occupiers.
If the first half of 2025 is any indication, the technology sector’s dominance in India’s office leasing market is far from waning. With large-sized deals continuing to anchor leasing momentum and innovation hubs expanding at a rapid pace, the sector looks set to remain the cornerstone of India’s commercial real estate growth story for years to come.
