New Delhi, Aug 14 (IANS) The technology sector continues to anchor office space demand, sustaining its role as one of the dominant demand drivers across the top 7 Indian cities, a report said on Thursday.

In the first half of 2025 (H1 2025), the sector accounted for more than 10 million sq ft of grade A space uptake across the top 7 cities, nearly 40 per cent of the overall conventional leasing, Colliers India said in its report.

According to the report, 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.

During H1 2025, the sector accounted for 43 per cent of the leasing through large-sized deals within conventional spaces, distantly followed by Banking, Financial Services, and Insurance (BFSI) companies at 28 per cent.

Continued momentum in large-sized deals, especially by leading technology companies, highlights their confidence in the local talent pool, infrastructure, long-term market potential and real estate, the report stated.

Large-sized technology 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 technology leasing through large-sized deals, signalling sustained expansionary momentum in the sector.

“The technology sector continues to demonstrate remarkable resilience, even amid global uncertainties and workforce adjustments. Since 2020, tech occupiers have leased close to 85 million sq. ft. of conventional office space across the top seven cities and accounted for the bulk of the large-sized transactions,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.

With ongoing Global Capability Centres (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 report stated.

In H1 2025 alone, the sector drove 43 per cent of the large-sized transactions of 100,000 sq. ft or above.

“Despite current headwinds, we expect technology occupiers to maintain the leasing momentum throughout 2025 and fuel commercial real estate in India, mainly supported by the expansion of GCCs,” Mehrotra added.

Bengaluru remains the epicentre of India’s technology sector and has established itself in the top 5 global tech destinations. Hyderabad, meanwhile, continues to strengthen its position as a major technology centre both in India and globally.

Together, these two accounted for nearly half of the country’s tech leasing over the last five years, underscoring their dominance as preferred markets for technology occupiers, according to the report.

Pune, Chennai, and Delhi-NCR are the others with sustained demand from technology firms.

–IANS

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