Business EconomyPosted at: Aug 14 2025 1:55PM


Tech sector continues to drive large-sized transactions across convention space: Report

Hyderabad, Aug 14 (UNI) Large-sized deals more than 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, according to a report released by Colliers India, a leading global diversified professional services company , specializing in commercial real estate services.
In H1 2025 too, 51 per cent 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.
The technology sector continues to drive large-sized transactions across conventional space, the report revealed.
Across India’s leading seven cities, the 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 -- Bengaluru, Chennai, Delhi NCR , Hyderabad,Kolkata, Mumbai and Pune--, nearly 40 per cent of the overall conventional leasing, it said.
The technology sector, in particular, remains the key driver of the large-sized transactions, indicating expansion and long-term space commitments amid evolving workplace strategies.
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.
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 per cent 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.
“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 the Indian office market,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.
Bengaluru and Hyderabad continue to drive 50 per cent of the Tech demand in India.
Bengaluru remains the epicentre 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, the report stated.

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.
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.

Vimal Nadar, National Director and Head of Research, Colliers India, said, “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.”
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.
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.
Overall, the next few years are likely to be crucial for the 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, the report added.
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