Delhi NCR and Bengaluru Lead Office Leasing Surge in Q1 2025

Delhi NCR and Bengaluru accounted for nearly half of the office leasing activity in Q1 2025, with the overall leasing across India's top seven markets reaching 15.9 million square feet, a 15% year-on-year increase. New supply was robust, with significant growth in Delhi NCR and Pune.

In an impressive start to 2025, Delhi NCR and Bengaluru dominated the office leasing landscape, driving nearly half of the activity in the first quarter. According to a report by Colliers, leasing across the top seven markets hit 15.9 million square feet, marking a 15% increase compared to last year.

Delhi NCR recorded its highest quarterly leasing in a decade, while Chennai experienced a staggering 93% year-on-year surge, fueled by technology firms' demand for space. This growth highlights the resilience of major markets like Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune.

With demand surpassing new supply, average office rents grew by 8% annually. The technology sector remained a key driver, occupying 4.4 million square feet of conventional office space. Flex space leasing also saw a 22% rise, reflecting the dynamic office market trends.

(With inputs from agencies.)