Top 10 micro markets to drive 80% of India's office space growth: Colliers

High-activity micro markets across the top seven Indian cities are likely to witness at least 1 million square feet (msf) of average annual office demand and supply and collectively drive more than 80 per cent of the demand and new supply in the next few years, according to a report by Colliers.
Of all the micro markets, four high-activity micro markets are in Bengaluru, three each are in Delhi NCR and Pune, two each are in Chennai and Hyderabad, and one in Mumbai. These high-activity micro markets are spread across secondary and peripheral business districts (SBDs and PBDs).
These micro markets are expected to continue to drive India's office market over the next few years amidst city expansions, ongoing infrastructure developments, and evolving work models.
While the existing high-activity micro markets will continue to grow, other emerging micro markets too are expected to increasingly complement the larger micro markets.
'India's office market is poised for steady strong growth, led by 15–20 high-activity micro markets. While some of these micro markets are already established commercial real estate hubs, emerging micro markets can potentially scale up and witness heightened traction in the upcoming years. Interestingly, India will continue to be strategically positioned in terms of rental arbitrage, with more than half of the Grade A demand expected in micro markets having sub or near-dollar rentals,' said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.
Of the total 38 msf of flex space leasing across the top seven Indian cities since 2020, 59 per cent corresponded to the top 10 micro markets. Within these, SBD-Hyderabad, ORR-Bengaluru, and Baner-Balewadi, Pune, cumulatively drove around one-third of the flex space uptake in India.
Overall, the annual flex space demand in these top 10 micro markets has surged from 1.3 msf in 2020 to 7.3 msf in 2024 at a compound annual growth rate (CAGR) of 54 per cent.
On the global capability centre (GCC) front, nearly 70 msf of GCC demand during the last five years has been concentrated in the top 10 micro markets, accounting for 73 per cent of the total GCC leasing in India.
Micro markets such as ORR, Whitefield, SBD 1, and North in Bengaluru, SBD and Off SBD in Hyderabad, and OMR Zone 1 and MPR in Chennai collectively have accounted for two-thirds of the country's Grade A space uptake by GCCs since 2020.
Although most micro markets in India have seen rental appreciation compared to pre-pandemic levels, select micro markets in Mumbai and Delhi NCR continue to lead in terms of average rentals. BKC, CBD, Lower Parel, Worli-Prabhadevi, Goregaon/JVLR, and Kalina in Mumbai, and CBD, Aerocity, Golf Course Road, and South Delhi in Delhi NCR feature prominently in the list of micro markets having the highest rentals in India.
Almost 30 per cent of the office micro markets in India have sub-10 per cent vacancy levels, compared to the 16.2 per cent vacancy at the India level.
'Majority of these high-activity micro markets will continue to have potentially higher rental upside and are likely to lean towards landlords and developers. In addition to the preference for premium offerings, occupiers will increasingly prefer sustainable elements and green-certified office buildings,' said Vimal Nadar, National Director and Head of Research, Colliers India.
Of the 488 msf of REIT-worthy office stock in India, 56 per cent is in the top 10 micro markets. Meanwhile, 275 msf of Grade A inventory (as of Q1 CY25) corresponding to 72 per cent of the overall stock in these micro markets is already under REITs or has the potential to be listed as future REITs.
Key micro markets in Bengaluru (ORR and Whitefield) and Hyderabad (SBD and Off SBD) collectively hold 38 per cent of India's REIT-worthy office stock. These four micro markets cumulatively have more than 35 msf of office stock already under existing REITs.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

India.com

25 minutes ago

• India.com

QS World Rankings 2026: From IIT Delhi To Anna University- Check List of Top 10 Indian Universities

photoDetails english 2919121 The QS World University Rankings 2026, released on Thursday, highlight the performance of over 1,500 universities across more than 100 countries, reflecting key trends in global higher education. While the United States maintains its strong presence, universities from Asia and Europe have shown significant improvement. India has once again marked its global academic presence in the QS World University Rankings 2026, with IIT Delhi leading the list at Rank 123, followed closely by IIT Bombay and IIT Madras. Scroll down to check the list of Indian Institutes Updated:Jun 20, 2025, 05:40 PM IST IIT Delhi - Rank 123 1 / 10 IIT Delhi stands out as one of India's most prestigious engineering and research institutes. Known for its amazing research, innovation, and strong industry collaborations, it offers top-tier programs in engineering, technology, and management. And its high global ranking reflects a strong academic reputation, and a vibrant campus environment that attracts talent from across the world. IIT Bombay - Rank 129 2 / 10 Located in Powai, Mumbai, IIT Bombay is globally renowned for excellence in engineering, science, and technology education. It has a vibrant culture, excellent placement records, and a best faculty. The institute is a hub for technological innovation and frequently partners with global institutions and industries for research and development. IIT Madras - Rank 180 3 / 10 IIT Madras, located in Chennai, has earned an excellent reputation for its interdisciplinary research, academic rigor, and their focus on sustainable development. It is particularly recognized for its strong programs in mechanical, electrical, and civil engineering. IIT Kharagpur - Rank 215 4 / 10 It is the oldest IIT, IIT Kharagpur has a rich heritage and an expansive campus. It offers a wide range of courses in engineering, law, management, and architecture. Known for its innovation-driven ecosystem and strong alumni network, it also has one of the largest tech fests in Asia named "Kshitij'. IISc Bangalore - Rank 219 5 / 10 The Indian Institute of Science (IISc) is India's premier research institution, particularly in the fields of science, engineering, and advanced technologies. Located in Bangalore, it has a research-intensive curriculum and is a leader in scientific innovation and postgraduate studies. IISc consistently ranks high in global research citations and academic impact. IIT Kanpur - Rank 222 6 / 10 IIT Kanpur is celebrated for its academic excellence, strong emphasis on research, and a liberal academic structure that allows students to explore diverse interests. The institute is especially strong in aerospace, computer science, and electrical engineering, and contributes significantly to India's technological growth. University of Delhi - Rank 328 7 / 10 The University of Delhi (DU) is one of India's largest and most prestigious universities, known for its humanities, commerce, and science programs. With a rich legacy, diverse student body, and influential alumni network, DU maintains a strong academic reputation and provides a comprehensive educational experience beyond technical fields. IIT Guwahati - Rank 334 8 / 10 IIT Guwahati is known for its beautiful campus and fast-rising global reputation. It offers cutting edge programs in engineering and science and has a growing reputation for research in data science, AI, and nanotechnology. It's among the younger IITs that have quickly established a global presence. IIT Roorkee - Rank 339 9 / 10 IIT Roorkee, originally established as the Thomason College of Civil Engineering in 1847, is one of the oldest engineering institutions in Asia. It has strengths in civil engineering, hydrology, and disaster management and plays a pivotal role in infrastructure research and development in India. Anna University - Rank 465 10 / 10 Anna University, based in Tamil Nadu, is known for its robust engineering programs and widespread affiliations with technical colleges across the state. The university has contributed significantly to technical education in South India and continues to make strides in research and innovation, particularly in computer science and electronics.

The Print

27 minutes ago

• The Print

New Delhi-Dhaka must reimagine ties as ‘strategic necessity for collective growth'—Bangladesh envoy

Riaz in his speech touched upon the soft dimensions of India-Bangladesh ties—language, culture and education. With thousands of Bangladeshi students studying in India, and an organic exchange of ideas and people across the two countries' 4,096-kilometre shared land border, he said the bilateral relationship was not merely geopolitical but personal. The remarks come at a time when ties between New Delhi and Dhaka have been tense for months. New Delhi: Bangladesh and India must reimagine bilateral and regional cooperation, not as a legacy of the past, but as a strategic necessity for collective growth and resilience, said M. Riaz Hamidullah, Bangladesh's High Commissioner to India, during a wide-ranging speech at the neighbouring country's belated national day celebration in New Delhi Thursday evening. 'Our collaboration cannot be judged solely by the memoranda signed or the meetings held,' he noted. 'We aspire for a peaceful and prosperous neighbourhood that upholds universal values while also protecting national interests.' 'Bound by shared geography, shared ecology, and a shared linguistic and cultural heritage, our two peoples embrace each other with respect and dignity,' Riaz added. 'Not just because we share the largest land boundary; our people engage organically, not merely as a matter of choice.' He further asserted that 'Bangladesh's ties with India are historic, deep and multilayered. Bangladesh is open and engaged with India to address diverse issues of the present and future'. Riaz noted that bilateral trade between India and Bangladesh grew in double digits in the fiscal gone by and said Dhaka sees the India-Bangladesh partnership as an engine for broader regional development, referencing the sub-regional energy agreement through which Nepal has begun transmitting 40 megawatts of electricity to Bangladesh via the Indian grid. 'These mutually gainful tasks are already in place,' Riaz said. 'It is this understanding that asks our two nations to reimagine bilateral and regional cooperation, not as a legacy of the past, but as a strategic necessity for our collective growth and resilience.' Highlighting Bangladesh's priorities under its chairmanship of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), Riaz said Dhaka looks forward to 'reinvigorating the regional cooperation agenda'. The envoy underlined the country's commitment to democratic values, calling democracy one of the founding ideals that inspired Bangladesh's liberation. He spoke of the current political transition under way in Dhaka, where an interim government led by Nobel laureate Muhammad Yunus is expected to hold free and fair elections early next year. He further emphasised that the future of Bangladesh lies in transformation: empowering the young to define their destiny and build a democracy that is not only electorally functional but socially inclusive. Riaz ended on a personal note, recounting his meeting last month with Raghu Rai—the Indian photojournalist who documented the Bangladesh Liberation War and was awarded the Padma Shri in 1972 for his powerful imagery. 'His work captured our agony, our struggle, and reminded me that the humanism of 1971 still binds us,' he said. 'Today, some of the war veterans from 1971 are with us in this hall. Their sacrifices must never be forgotten.' 'The friendship between Bangladesh and India must continue to fly forward, rooted in history, yet reaching ambitiously into the future,' Riaz concluded. (Edited by Nida Fatima Siddiqui) Also Read: After Operation Sindoor, why India must keep an eye on Bangladesh too

Fibre2Fashion

42 minutes ago

• Fibre2Fashion

CAI revises 2024–25 cotton output to 301 L bales, seeks policy reforms

The Cotton Association of India (CAI) has further raised its cotton production estimate to 301.15 lakh bales of 170 kg for the current 2024–25 season (October–September). In its April 2025 report, it had projected production at 291.35 lakh bales. India's cotton production last year stood at 327.45 lakh bales. The region-wise analysis shows that cotton production in north India may fall to 28.80 lakh bales this season from 45.62 lakh bales. In central India, production is expected to reach 180 lakh bales, down from 202.21 lakh bales last year. However, cotton production in south India may rise to 86.50 lakh bales from 73.85 lakh bales, CAI said in a press statement. CAI has raised its 2024â€'25 cotton production estimate to 301.15 lakh bales. Output is set to decline in the north and central regions but rise in the south. Consumption and exports are expected to fall, while imports may more than double. CAI flagged rising MSPs as a threat to competitiveness and urged reforms, including changes to CCI's sales policy and a Bhavantar-like scheme. Cotton stock is projected to be 48.34 lakh bales at the end of the current season, compared to 30.19 lakh bales last year. The country's cotton consumption may decline to 305 lakh bales from 313 lakh bales in the previous year. Cotton exports are also expected to fall to 17 lakh bales from 28.36 lakh bales last season, while imports may rise two-and-a-half-fold to 39 lakh bales from 15.20 lakh bales. CAI stated that the continuous increase in minimum support prices (MSP) for cotton is causing concerns. Higher MSPs not only distort market dynamics and hinder the natural price discovery process, but also raise production costs for textile mills, potentially leading to higher consumer prices and negatively impacting the global competitiveness of Indian cotton. As this poses a threat to the survival of the entire value chain, stakeholders emphasised the need for an equitable solution that continues to provide remunerative prices to farmers without compromising the competitiveness of trade and industry. Several suggestions were made during the meeting, including the introduction of a Bhavantar-like scheme and revisions to the Cotton Corporation of India (CCI) sales policy. Suresh Kotak, chairman of the Textile Advisory Group and chairman of the Kotak Group of Companies , appreciated the stakeholders' concerns and acknowledged the need to revise the MSP structure and CCI sales policy. He noted the suggestions and stated that he would take them up with the government. Fibre2Fashion News Desk (KUL)