Hyderabad Real Estate Leads Office Space Surge Among Top Indian Cities

Hyderabad's commercial real estate sector posted an impressive performance in the second quarter (April–June) of 2025, with office space leasing rising by 23% year-on-year. According to a recent report by Colliers India, the city recorded leasing transactions amounting to 3.2 million square feet (sft), up from 2.6 million sft during the same period in 2024.

The report highlighted that gross office space leasing across India’s top seven cities increased by 11%, reaching 17.8 million sft, signaling strong corporate confidence despite global economic uncertainties.

Hyderabad Shines as Other Cities Follow

The data indicates a growing appetite for office space, particularly from corporates and coworking operators. Cities such as Bengaluru, Chennai, Delhi-NCR, Kolkata, and Pune also showed positive leasing trends, while Mumbai experienced a notable decline.

City-Wise Highlights (Q2 2025):

• Bengaluru maintained a steady leasing volume of 4.8 million sft, same as Q2 2024.
• Chennai saw a 30% year-on-year jump, leasing 2.6 million sft.
• Delhi-NCR recorded 2.2 million sft, up 16% from last year.
• Kolkata doubled its numbers, jumping from 0.3 million to 0.6 million sft.
• Pune reported a massive 60% increase, touching 1.6 million sft.
• Mumbai was the only city to witness a decline, with leasing dropping to 2.8 million sft, down 20% from 3.5 million sft in Q2 2024.

Out of the total 17.5 million sft leased across these cities, corporates accounted for 13.5 million sft, while coworking operators absorbed 4.3 million sft.

Note: Colliers clarified that the figures do not include lease renewals, pre-commitments, or expressions of interest.

2025 Outlook: Commercial Real Estate to Maintain Growth Momentum

“India’s office market continues to display strong growth in 2025, backed by consistent demand and diversified tenant activity,” said Arpit Malhotra, Managing Director, Office Services, Colliers India.

He added, “With stable supply and encouraging leasing patterns, we anticipate the total office space demand to reach 65–70 million sft by year-end.”

India's commercial real estate, especially in cities like Hyderabad, is showing resilience and momentum. With businesses expanding operations and coworking models gaining traction, the office leasing landscape appears primed for continued growth throughout 2025.