Chennai witnessed his greatest lease activity, the largest in the last five quarters in the first quarter of 2025 to 2.9 million square feet, according to a new real estate consulting report.
From this, around 60 percent came from the Pallavaram-Thoraipakkam (PTR) area and the old markets in Zone 2 of Mahabalypuram Road (OMR). Flex Space Lesing, at 0.3 mn square feet, emerged more than 3x times compared to the corresponding 2024 period.
In the midst of robust demand and modern supply, vacancy levels in the first quarter of 2025 fell into 300 basic points (BP) in an annual basic, says a recent report by Colliers India.
Tata Consultancy Services’ 690000 square feet SQ SPACE SPACE IN OZONE TECH PARK IN THE OMR AREA; Walmart Leasing 465,400 square feet in capital and ITPC-Radial Road in the Pallavaram-Thoraipakkam Road (PTR) and the lease of State Street 202,000 square feet in capital and ITPC-Radial Road in PTR, according to the report.
The seven main markets
Throughout India, the lease of offices in the seven main markets remained solid in the first quarter of 2025 to 15.9 million square feet, which reflects an increase of 15 percent year -on -year (interannual).
Bangalore and Delhi NCR together led almost half of the lease activity by turning the room. While Delhi NCR saw its highest quarterly lease in the last 10 rooms, Chennai also witnessed a 93 percent yoy increase to 2.9 million square feet, driven by the space lawyer for technological companies.
In general, the new supply touched 9.9 million square feet Q1 2025, almost along with the same period last year. Bengaluru and Delhi NCR together led two thirds of the new supply duration Q1 2025. Almost 90 percent of the new King Supply K1 2025 concentrated on three cities-bengaluru, Delhi NCR and Pune.
With the demand, exceeding the new supply in most cities, the average office rentals increased annually by 8 percent just Q1 2025.
The technology sector continued to boost the demand for office space, leaving 4.4 million square feet of conventional office spaces Q1 2025, 28 percent of the total duration of demand in the quarter. BFSI and the engineering and manufacturing demand was also healthy at 3.4 million square feet and 2.4 million square feet, which represents 36 percent of the total collection of space in the quarter, according to the report.
Posted on April 14, 2025
