Summary:

India’s office space expansion is being led by 15 important micro markets in Bengaluru, Delhi NCR, Pune, Hyderabad, Chennai, and Mumbai. According to Colliers' most recent study, these hubs have accounted for two-thirds of office demand and more than three-quarters of new supply since 2020. Between 2020 and early 2025, they consumed 166.8 million square feet while adding 172.2 million square feet, accounting for 76% of the total. These marketplaces, mostly in outlying commercial districts, are currently popular among GCCs and flexible spaces.

Since 2020, 73% of GCC leasing, or around 70 million sq. ft., has concentrated on India's top ten micro markets, including Bengaluru's ORR and Whitefield, Hyderabad's SBD and Off-SBD, and Chennai's OMR Zone One and Madhya Kailash-Perungudi. Flex space operators have also targeted these centres, accounting for 59% of the 38 million sq. ft. flex leasing category, with a 54% CAGR. Meanwhile, 30% of micromarkets had vacancy rates less than 10%. Prime regions like as Bengaluru's CBD, Chennai's Guindy, and Delhi NCR's Aerocity and Cybercity are impervious to rising rents. The most expensive spaces are located in Mumbai and the Delhi NCR. Interestingly, 56% of REIT-worthy Grade A stocks are in the top 10 micro markets.

Source: IBEF

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