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India’s technology sector continues to drive office space demand, with Global Capability Centres (GCCs) leading the charge. According to a Colliers report, the technology sector accounted for nearly 40% of overall conventional leasing in India’s top seven cities in the first half of 2025, with over 10 million square feet of Grade A space uptake.

Across India’s leading seven cities, 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, nearly 40% of the overall conventional leasing, the report said.

The technology and GCC sectors, in particular, remains the key driver of the large-sized transactions, indicating expansion and long-term space commitments amidst evolving workplace strategies. During H1 2025, the sector accounted for 43% of the leasing through large-sized deals within conventional spaces, distantly followed by BFSI companies at 28%. 

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

“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 Indian office market,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.

Bengaluru remains the epicentre of India’s technology sector and has established itself in the top five global tech destinations, supported by its deep talent pool, mature IT ecosystem, and robust office infrastructure. 

Hyderabad, meanwhile, continues to strengthen its position as a major technology centre 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.

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. 

In fact, as per NASSCOM, GCCs in India are projected to increase from around 1,800 currently to over 2,400 with revenues exceeding US$100 billion by 2030. The role of domestic IT firms is also undergoing a steady shift as artificial intelligence, generative learning, machine learning and cloud computing permeate further into the fabric of the Indian IT industry.