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Business News | Technology Sector Anchors ~40% Office Leasing While Global Enterprises Expand India Operations: Colliers | LatestLY

Bengaluru (Karnataka) [India], August 14: Large-sized deals (>=100,000 sq. ft.), continue to drive India's commercial office market, consistently accounting for bulk of the Grade A office space uptake in the last 5 years. In H1 2025 too, 51% of the total leasing across the top 7 cities was through large-sized deals at 17.2 million sq feet, reflecting occupiers' sustained appetite for high-quality office spaces to support growth strategies. Also Read | 'Bigg Boss 19': Transgender Athlete Anaya Bangar Approached for Salman Khan's Upcoming Reality Show? Here's What We Know. Technology sector continues to drive large-sized transactions across conventional space Across India's leading seven cities, technology sector continues to anchor office space demand, sustaining its role as one of the dominant demand drivers. While its share in overall conventional leasing has seen a marginal dip since 2020, the sector's leasing volumes have grown steadily in absolute terms, indicating continued expansion. 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. Also Read | 'Cannot Ignore Pahalgam': Supreme Court Expresses Caution on Jammu and Kashmir's Statehood Pleas. The technology sector, in particular, remains the key driver of the large-sized transactions, indicating expansion and long-term space commitments amidst evolving workplace strategies. During H1 2025, the sector accounted for 43% of the leasing through large-sized deals within conventional spaces, distantly followed by BFSI companies at 28%. Continued momentum in large-sized deals, especially by leading tech companies, highlights their confidence in the local talent pool, infrastructure, long-term market potential & real estate. In fact, large-sized tech deals have picked up pace in recent years, with leasing volumes in conventional spaces increasing from 6.4 million sq feet in 2023 to 8.7 million sq feet in 2024. H1 2025 has already seen 6.2 million sq feet of tech leasing through large-sized deals, signaling sustained expansionary momentum in the sector. With ongoing GCC expansions in the country, digital transformation spearheaded by AI adoption, large-sized deals are poised to remain the driving force of the Indian office market in the next few years. Technology firms continue to anchor India's flex space demand as well The technology sector also remains a dominant occupier within flex spaces, as leading tech firms continue to adopt agile workspace strategies to support hybrid work models. The sector currently accounts for 40-50% of the total flex space demand across the top 7 cities of the country. This trend is particularly pronounced in key IT hubs such as Bengaluru, Hyderabad and Pune, where flexible work arrangements enable companies to optimize costs, enhance scalability, and attract skilled talent. While the occupier base for flex spaces is steadily diversifying, the technology sector is expected to retain its prominence, driving sustained flex space demand in the next few years. "The technology sector continues to demonstrate remarkable resilience, even amid global uncertainties and workforce adjustments. Since 2020, tech occupiers have leased close to 85 million sq. ft. of conventional office space across the top seven cities and accounted for bulk of the large-sized transactions. In H1 2025 alone, the sector drove 43% of the large -sized transactions of 100,000 sq. ft or above. Despite current headwinds, we expect technology occupiers to maintain the leasing momentum throughout 2025 and fuel commercial real estate in India, mainly supported by expansion of GCCs. Meanwhile, strong IT talent pool and cost arbitrage will continue to be the differentiating factors for Indian office market," said Arpit Mehrotra, Managing Director, Office Services, Colliers India. Bengaluru and Hyderabad continue to drive ~50% of the Tech demand in India Bengaluru remains the epicenter of India's technology sector and has established itself in the top 5 global tech destinations, supported by its deep talent pool, mature IT ecosystem, and robust office infrastructure. Hyderabad, meanwhile, continues to strengthen its position as a major technology center both in India and globally, driven by competitive costs, supportive government initiatives, and availability of high-quality office developments. Together, Bengaluru and Hyderabad account for nearly half of the country's tech leasing over the last five years, underscoring their dominance as preferred markets for technology occupiers. The two cities are followed by Pune, Chennai, and Delhi-NCR with sustained demand from technology firms. Top 5 Micro-markets drive nearly 50% of the Tech leasing at Pan India level 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. The Indian IT industry is at the cusp of a structural change where global tech companies are increasingly expanding their India operations by setting knowledge & innovation hubs, thereby accelerating the digital revolution in India. In fact, as per NASSCOM, GCCs in India are projected to increase from around 1,800 currently to over 2,400 with revenues exceeding USD 100 billion by 2030. The role of domestic IT firms is also undergoing a steady shift as artificial intelligence, generative learning, machine learning and cloud computing permeate further into the fabric of Indian IT industry. Overall, the next few years are likely to be crucial for technology sector in India, driven by evolving contours between domestic and global tech companies in the country. Real estate requirements by the tech sector, thus will also continue to undergo a gradual structural transformation over the next few years. Media Contact:Sukanya DasguptaNational Director, Marketing & Communications | IndiaSukanya.dasgupta@colliers.com+91-9811867682 About Colliers Colliers (NASDAQ: CIGI) (TSX: CIGI) is a leading global diversified professional services company, specializing in commercial real estate services, engineering consultancy and investment management. With operations in 70 countries, our 22,000 enterprising professionals provide exceptional service and expert advice to clients. For nearly 30 years, our experienced leadership - with substantial inside ownership - has consistently delivered approximately 20% compound annual investment returns for shareholders. With annual revenues exceeding $4.5 billion and $99 billion of assets under management, Colliers maximizes the potential of property, infrastructure and real assets to accelerate the success of our clients, investors and people. Learn more at corporate.colliers.com,Twitter @Colliers or LinkedIn. Logo: https://mma.prnewswire.com/media/2667399/5458295/Colliers_Logo.jpg (ADVERTORIAL DISCLAIMER: The above press release has been provided by PRNewswire. ANI will not be responsible in any way for the content of the same)

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