Office space leasing in India's top seven cities increased by 15% in Q1 2025, driven by demand from domestic and foreign companies. Despite some regions experiencing declines, the overall market reflects strong growth in Grade A spaces, and a continued trend towards ESG-compliant and tech-integrated workplaces. The office space leasing market in India experienced a 15% surge during the January to March 2025 quarter, reaching a total of 159 lakh sq ft, according to the latest report from real estate consultant Colliers India. This rise is attributed to increasing demand from both domestic and international corporates. Cities like Bengaluru and Chennai led this growth, posting impressive rises of 13% and 93% respectively in gross office leasing. However, areas like Hyderabad and Kolkata saw significant declines in leasing activities. The report highlights a strong preference for Grade A spaces, with corporates from technology, BFSI, and engineering sectors being the primary tenants. Industry leaders express optimism about continued growth, attributing it to economic maturing, strategic expansions of major firms, and the shift towards ESG-compliant, tech-integrated offices. The market is expected to maintain its momentum into 2025, supported by positive domestic growth prospects and policy initiatives in key states.

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