Archive · 25 Jul 2025
IT Sector Leads Office Space Absorption in India in Q2 2025
Imagine companies needing office space.
In India, the IT and related tech companies are renting the most office space, taking up half of all the new space.
Then, there are flexible office spaces, which are like renting a desk or a small office for a short time.
Those are also becoming more popular.
Most of the new office space being rented is happening in cities like Bengaluru, Hyderabad, and Mumbai.
The experts think even more office space will be rented out by the end of the year.
IT and ITeS sectors led office space absorption in Q2 2025, accounting for 50% of the total.
Flex spaces saw a significant increase in absorption, reaching 14% in Q2 2025, up from 9% the previous quarter.
Bengaluru, Chennai, and Hyderabad accounted for 80% of absorption in metro cities.
IT-ITeS sector recorded 36.75 million sq ft of absorption in H1 2025, a 21% increase YoY.
Vestian anticipates office space absorption to exceed 75 million sq ft by the end of 2025.
- Who
- IT, ITeS sectors, flex space providers, and commercial real estate firms
- What
- Office space absorption by IT and flex spaces
- When
- Q2 2025 and H1 2025
- Where
- India, with a focus on major cities like Bengaluru, Hyderabad, and Mumbai
- Why
- Companies are returning to in-office operations and demand for adaptable workspaces is increasing.
Businesses needing flexible workspaces
Businesses needing traditional office spaces
Workspace preferences
Businesses needing flexible workspaces
Benefit from adaptability and customization.
Businesses needing traditional office spaces
Businesses looking for standard office spaces.
- IT-ITeS Absorption (Q2 2025)
- 50%
- Flex Space Absorption (Q2 2025)
- 14%
- IT-ITeS Absorption (H1 2025)
- 36.75 million sq ft
- YoY Increase (H1 2025)
- 21%
- Anticipated Absorption (End of 2025)
- Over 75 million sq ft