Tech Firms Drive Office Space Demand: Colliers Report

New Delhi, Aug 14 (PTI) Technology companies have taken on lease 10.8 million sq ft of office space directly from property owners during the January-June period of this year across seven major cities, contributing 40 per cent to total demand for conventional workspace, according to Colliers India.

Real estate consultant Colliers India data showed that the total gross leasing of conventional office space stood at 27.2 million square feet across seven cities in the first half of this calendar year. Of this, technology companies took 10.8 million sq ft on rent.

Apart from this, technology companies have also rented office space in co-working centres.

"The technology sector also remains a dominant occupier within flexible office spaces, as leading tech firms continue to adopt agile workspace strategies to support hybrid work models," the consultant said.

Co-working operators have taken on lease 6.5 million sq ft of office space from property owners to set up their centres.


Colliers has estimated that tech companies account for 40-50 per cent of the total demand for flexible workspace in co-working centres.

The consultant said that these data pertain to Grade A buildings only in the top seven cities – Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, and Pune.

Gross absorption does not include lease renewals, pre-commitments and deals where only a Letter of Intent (LoI) has been signed.

"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 (global capability centres)," Arpit Mehrotra, Managing Director - Office Services at Colliers India, said.

He noted that a strong IT talent pool and cost arbitrage would continue to be the differentiating factors for the Indian office market.