Trust vs Innovation: The BFSI CIO's Ultimate Dilemma
This talk was a part of ETCIO Annual Conclave 2025, Goa, May 29-June 1
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Business Standard
5 hours ago
- Business Standard
Technology sector anchors ~40% office leasing while global enterprises expand India operations: Colliers
PRNewswire Bengaluru (Karnataka) [India], August 14: Large-sized deals (≥100,000 sq. ft.), continue to drive India's commercial office market, consistently accounting for bulk of the Grade A office space uptake in the last 5 years. In H1 2025 too, 51% of the total leasing across the top 7 cities was through large-sized deals at 17.2 million sq feet, reflecting occupiers' sustained appetite for high-quality office spaces to support growth strategies. Technology sector continues to drive large-sized transactions across conventional space 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 technology sector, 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 & 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. Technology firms continue to anchor India's flex space demand as well The technology sector also remains a dominant occupier within flex spaces, as leading tech firms continue to adopt agile workspace strategies to support hybrid work models. The sector currently accounts for 40-50% of the total flex space demand across the top 7 cities of the country. This trend is particularly pronounced in key IT hubs such as Bengaluru, Hyderabad and Pune, where flexible work arrangements enable companies to optimize costs, enhance scalability, and attract skilled talent. While the occupier base for flex spaces is steadily diversifying, the technology sector is expected to retain its prominence, driving sustained flex space demand in the next few years. "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 bulk of the large-sized transactions. In H1 2025 alone, the sector drove 43% 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 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 and Hyderabad continue to drive ~50% of the Tech demand in India Bengaluru remains the epicenter of India's technology sector and has established itself in the top 5 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 center 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. Top 5 Micro-markets drive nearly 50% of the Tech leasing at Pan India level Majority of leading technology micro-markets in the country are concentrated in South India, which has established IT hubs such as ORR & Whitefield in Bengaluru, SBD & Off-SBD in Hyderabad, and OMR Zone in Chennai. These micro markets have consistently witnessed strong traction in technology leasing, driven by an established IT/ITeS ecosystem, well-developed social & physical connectivity and availability of skilled talent in residential catchment areas. Competitive rentals and availability of relatively larger floor plates in office developments have added to the forward-looking IT policies of these states in southern India. "India's technology leasing continues to be dominated by select high-performing IT hubs. In H1 2025, the top micro-markets - ORR & Whitefield in Bengaluru, SBD and Off-SBD in Hyderabad, and OMR Zone in Chennai, accounted for nearly half of India's total tech leasing, a clear testament to their unmatched pull amongst IT occupiers. These hubs have not only weathered market shifts but have set the pace for India's office sector. The Indian technology sector is experiencing significant growth and transformation, driven by trends like AI adoption, cloud computing and cybersecurity. Ongoing innovation and global servicing capabilities are likely to remain unmatched, with the sector potentially accounting for 40-50% of the office space uptake in 2025," said Vimal Nadar, National Director and Head of Research, Colliers India. 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 USD 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 Indian IT industry. Overall, the next few years are likely to be crucial for technology sector in India, driven by evolving contours between domestic and global tech companies in the country. Real estate requirements by the tech sector, thus will also continue to undergo a gradual structural transformation over the next few years. Media Contact: Sukanya Dasgupta National Director, Marketing & Communications | India +91-9811867682 About Colliers Colliers (NASDAQ: CIGI) (TSX: CIGI) is a leading global diversified professional services company, specializing in commercial real estate services, engineering consultancy and investment management. With operations in 70 countries, our 22,000 enterprising professionals provide exceptional service and expert advice to clients. For nearly 30 years, our experienced leadership - with substantial inside ownership - has consistently delivered approximately 20% compound annual investment returns for shareholders. With annual revenues exceeding $4.5 billion and $99 billion of assets under management, Colliers maximizes the potential of property, infrastructure and real assets to accelerate the success of our clients, investors and people. Learn more at @Colliers or LinkedIn.
Hans India
7 hours ago
- Hans India
Technology sector anchors 40 pc office leasing in India: Report
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.
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Business Standard
7 hours ago
- Business Standard
Tech sector powers 40% of India's office leasing in H1 2025, Bengaluru tops
India's commercial office market is being anchored by the technology sector, which drove nearly 40% of all Grade A conventional office leasing in the first half of 2025, according to data from Colliers India. Large-sized transactions of 100,000 sq. ft. or more continued to dominate the market, accounting for 51% of total leasing across the top seven cities. Trends in office leasing across deal sizes (2020- H1 2025) 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. Source: Colliers Note: Percentages represent the share of total annual leasing activity in each deal size category in the respective year. Data includes leasing across conventional space as well as flex space Data petains to Grade A buildings only. Data pertains to top 7 cities – Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, and Pune | Kolkata data limited for 2020-23 period Large-Sized Deals Remain the Market's Backbone In H1 2025, 17.2 million sq. ft. of the total 33.7 million sq. ft. gross leasing came from large-sized deals — a pattern that has held steady for the past five years. Tech occupiers led the pack, contributing 43% of all large-sized conventional transactions, followed by BFSI companies at 28%. The tech sector's large-sized leasing has risen steadily — from 6.4 million sq. ft. in 2023 to 8.7 million sq. ft. in 2024, with 6.2 million sq. ft. already signed in H1 2025. 'Since 2020, tech occupiers have leased close to 85 million sq. ft. of conventional office space and continue to drive India's large-sized office transactions. The expansion of GCCs, coupled with AI-led digital transformation, will keep momentum high,' said Arpit Mehrotra, Managing Director, Office Services, Colliers India. Bengaluru & Hyderabad Dominate Tech Leasing Together, Bengaluru and Hyderabad accounted for nearly 50% of all tech leasing over the past five years. Bengaluru: 3.0 million sq. ft. of tech leasing in H1 2025 (28% share) Hyderabad: 2.3 million sq. ft. (21% share) They are followed by Pune, Chennai, and Delhi-NCR, which continue to attract consistent demand from technology companies. Top Tech Hubs Continue to Pull Occupiers Five micro-markets — ORR & Whitefield (Bengaluru), SBD & Off-SBD (Hyderabad), and OMR Zone (Chennai) — accounted for nearly half of all tech leasing in India in H1 2025. 'These hubs have weathered market shifts and set the pace for India's office sector. With AI, cloud computing, and cybersecurity driving expansion, tech could account for 40-50% of office space uptake in 2025,' said Vimal Nadar, National Director & Head of Research, Colliers India. Flex Space Demand from Tech Firms Stays Strong Tech occupiers also account for 40–50% of flex space demand, particularly in Bengaluru, Hyderabad, and Pune. Flexible workspace strategies are helping companies optimize costs, adopt hybrid models, and attract skilled talent. Trends in Pan India office leasing (2020 - H1 2025) Source: Colliers Note: Data pertains to Grade A buildings only. Structural Shift in Indian IT Real Estate As per NASSCOM, India's GCC count is projected to rise from ~1,800 currently to over 2,400 by 2030, generating USD 100+ billion in revenues. This expansion, along with a shift toward AI, machine learning, and cloud-first operations, is expected to reshape real estate requirements. Trends in conventional leasing by Technology sector across key markets' Majority of leading technology micro-markets in the country are concentrated in South India, which has established IT hubs such as ORR & Whitefield in Bengaluru, SBD & Off-SBD in Hyderabad, and OMR Zone in Chennai. These micro markets have consistently witnessed strong traction in technology leasing, driven by an established IT/ITeS ecosystem, well-developed social & physical connectivity and availability of skilled talent in residential catchment areas. Competitive rentals and availability of relatively larger floor plates in office developments have added to the forward-looking IT policies of these states in southern India. "India's technology leasing continues to be dominated by select high-performing IT hubs. In H1 2025, the top micro-markets - ORR & Whitefield in Bengaluru, SBD and Off-SBD in Hyderabad, and OMR Zone in Chennai, accounted for nearly half of India's total tech leasing, a clear testament to their unmatched pull amongst IT occupiers. These hubs have not only weathered market shifts but have set the pace for India's office sector. The Indian technology sector is experiencing significant growth and transformation, driven by trends like AI adoption, cloud computing and cybersecurity. Ongoing innovation and global servicing capabilities are likely to remain unmatched, with the sector potentially accounting for 40-50% of the office space uptake in 2025,' said Vimal Nadar, National Director and Head of Research, Colliers India. Noe: Data pertains to Grade A buildings only | Kolkata data limited for 2020-23 period. Gross absorption does not include lease renewals, pre-commitments and deals where only a letter of Intent has been signed. Percentage indicates share of the res
