Tech Sector Drives India's Commercial Office Boom

India's commercial office market is thriving, with large-sized deals accounting for 51% of leasing in H1 2025 across the top seven cities. The technology sector leads the demand, marking significant expansions in conventional and flex spaces. This growth underlines the sector's confidence in India's market potential.

The commercial office market in India is witnessing a thriving phase, underscored by large-sized deals that have consistently constituted the bulk of Grade A office space uptake over the last five years. In the first half of 2025, such deals accounted for 51% of total leasing across India's top seven cities, marking a significant consumption of 17.2 million square feet. This trend reflects a sustained appetite among occupiers for high-quality office spaces that support growth strategies.

Over this period, the technology sector has emerged as a key driver of large-sized transactions, anchoring demand for conventional space. Although this sector's share in overall conventional leasing experienced a slight decline since 2020, its leasing volumes have grown consistently in absolute terms, illustrating ongoing expansion. During the first half of 2025, the technology sector dominated office space uptake, accounting for over 10 million square feet of Grade A space across major cities, which equates to nearly 40% of conventional leasing.

This momentum in large-sized deals, primarily driven by leading tech companies, highlights their confidence in the local talent pool, infrastructure, and long-term market potential. With continued global capability center expansions, digital transformation steered by artificial intelligence adoption, and flexible workspace strategies, large-sized deals are poised to remain the principal force propelling the Indian office market in the upcoming years.

(With inputs from agencies.)