Tech companies account for almost half of flexible workspace demand in the first half of 2025
In the first half of 2025, India's technology office space demand is being driven primarily by a select group of major cities, reflecting their vital role in the country's tech ecosystem. The top cities include Bengaluru, Hyderabad, and Delhi-NCR, which collectively account for over 85% of the leasing activity by Global Capability Centres (GCCs) in the technology sector.
Bengaluru, often referred to as India's Silicon Valley, is a magnet for technology firms due to its deep talent pool, vibrant startup ecosystem, and strong infrastructure supporting research, development, and innovation. The city has a long history of attracting both domestic and multinational tech companies, making it a preferred location for GCCs and technology-driven occupiers.
Hyderabad, with its business-friendly policies, high-quality commercial real estate, and a robust supply of skilled talent, offers cost advantages and a supportive regulatory environment, attracting a significant number of global technology and GCC tenants seeking scalability and innovation hubs.
The National Capital Region, or Delhi-NCR, benefits from a high concentration of educational institutions, a diverse talent base, and proximity to government and regulatory agencies, making it attractive for technology firms and GCCs that require both operational scale and strategic oversight.
Other important contributors include Pune, Chennai, and Mumbai, but their impact is less pronounced compared to the leading trio.
India's office space demand is experiencing robust growth, with technology firms, GCCs, and the banking, financial services, and insurance sectors leading the way. The country's vast talent pool, cost advantages, and maturing tech ecosystem are key reasons why global companies are expanding or consolidating their operations in these cities.
Flexible and conventional office space uptake is being driven by both existing technology companies expanding and the entry of new players, especially in the areas of product development, R&D, analytics, and AI-driven solutions.
India's top six cities make the top 10 list for tech talent acquisition in the APAC region, further establishing the country as a powerhouse of tech talent and a key player in the global innovation ecosystem.
Arpit Mehrotra, Managing Director, Office Services, India, Colliers, stated that India's office markets will continue to be significant due to their high-quality office space, robust IT infrastructure, and cost competitiveness. The report adds that India's top cities are driving the commercial real estate momentum due to GCCs in the technology space.
The Asia Pacific region is gaining momentum as a global tech talent hub, with three of the world's top 10 locations being in the region: Beijing in China, Bengaluru in India, and Tokyo in Japan. Global Capability Centers (GCCs), particularly those in the technology space, continue to drive India's commercial real estate momentum.
In summary, India's top cities—Bengaluru, Hyderabad, and Delhi-NCR—are leading the charge in global tech office space demand due to their deep talent ecosystem, established IT infrastructure, and lower operational & talent costs, making them an ideal hub for global technology firms.
| City | Key Drivers for Tech Office Demand | |-------------|--------------------------------------------------| | Bengaluru | Deep talent pool, startup ecosystem, innovation | | Hyderabad | Skilled workforce, cost advantages, infrastructure| | Delhi-NCR | Large talent base, connectivity, regulatory access|
- Arpit Mehrotra, Managing Director of Office Services at Colliers, believes that India's office markets will remain significant due to their high-quality office space, robust IT infrastructure, and cost competitiveness.
- India's top cities—Bengaluru, Hyderabad, and Delhi-NCR—are driving the commercial real estate momentum due to Global Capability Centers (GCCs) in the technology space.
- The Asia Pacific region is developing as a global tech talent hub, with three of the world's top 10 locations for tech talent acquisition being in the region: Beijing in China, Bengaluru in India, and Tokyo in Japan.
- Flexible and conventional office space uptake in India is being driven by both existing technology companies expanding and the entry of new players, especially in the areas of product development, research and development (R&D), analytics, and AI-driven solutions.
