Technology firms drive nearly half of flex space demand in first half of 2025
Flexible office spaces offer employees a range of options and work environments. Unlike traditional offices with fixed and assigned desk positions, workers in a flexible office space can choose the area of the office that best suits the type of work they need to do at that moment.
Occupiers in the technology sector remain a cornerstone of office space demand across India's top seven cities, driving Grade A space uptake in both conventional and flex spaces over the past years, said real estate consultancy firm Colliers.
During H1 2025, Tech occupiers leased over 10 million square feet of office space across the top 7 cities, driving 40 per cent of the conventional space demand, the report added.
Bengaluru and Hyderabad, which host India's largest talent clusters, continue to lead tech leasing activity, together driving nearly 50 per cent of the conventional office space uptake in H1 2025.
The Tech sector dominance is driven by India's deep talent ecosystem, established IT infrastructure, and lower operational & talent costs, making it an ideal hub for global technology firms.
"India is a powerhouse of tech talent and a key player in the global innovation ecosystem, supported by availability of skilled talent and employment opportunities across Tier I as well as emerging cities of the country," said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.
"Leading tech cities in India account for 69 per cent of the total tech talent in the Asia Pacific region. Bengaluru and Hyderabad, which host the region's largest talent clusters, continue to lead tech leasing activity, together driving nearly 50% of the conventional office space uptake in H1 2025," Mehrotra added.
He further added that With the availability of high-quality office space, robust IT infrastructure, and cost competitiveness, India's office markets will continue to feature prominently among the top destinations for technology-led global economic expansion.
The Global Tech Markets: Top Talent Locations 2025 report which examined more than 200 global markets added that Asia Pacific region is gaining momentum as a global tech talent hub, being home to three of the world's top 10 locations - Beijing in China, Bengaluru in India and Tokyo in Japan.
India and China continue to dominate the global technology talent landscape, with India ranking among the top destinations for tech talent both in the Asia Pacific as well as globally.
India particularly stands out in terms of talent availability, with its top six cities making the top 10 list for tech talent acquisition in the APAC region, the report added.
Global Capability Centers (GCCs)--particularly those in the technology space--continue to drive India's commercial real estate momentum.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
Nifty in red, Sensex loses 330 pts in opening amid valuation concerns of Indian markets
Mumbai (Maharashtra) [India], July 14 (ANI): Indian stock markets opened flat on Monday as valuation concerns emerged alongside weak earnings in the first quarter of the current financial year. The Nifty 50 index opened at 25,123.65, declining by 26.20 points or 0.10 per cent, while the BSE Sensex opened at 82,392.04, down by 108.43 points or 0.13 per cent. Experts attribute the cautious start to a mix of high valuations, weak corporate results, and global uncertainties. Ajay Bagga, Banking and Market Expert, told ANI, "Indian markets have a problem of premium valuations with earnings yet to pick up meaningfully and a weak global sentiment impacting FPI inflows." He added that large divestments by insiders, including promoters and private equity funds, as well as a strong pipeline of new primary market issuances, are draining liquidity from secondary markets. "When promoters are selling their crown jewels, markets should be more circumspect and lowering valuations," Bagga said. "Instead, we are seeing a continued 'buy all dips' strategy by domestic retail investors, who are holding up the markets and providing easy exits to departing insiders in a counterintuitive move." Global sentiment remains uncertain, particularly in the United States. US markets witnessed a negative week amid increasing trade tensions under President Donald Trump's administration, which included fresh tariff-related announcements. Tensions between the Trump administration and the Federal Reserve, led by Jerome Powell, further dampened sentiment. This week, the US markets are awaiting major earnings announcements, especially from big banks, along with key inflation data, which could indicate the impact of Trump's tariffs on consumer and producer prices. Back in India, in the broader market indices on the NSE, the Nifty Midcap 50 and Nifty Smallcap 1000 opened in the green, while other major indices were in the red. The Nifty 100 index was down by 0.20 per cent. In sectoral indices, only Nifty Auto and PSU Bank were in positive territory, while the rest opened in red. Notably, Nifty IT was down by more than 1 per cent. Akshay Chinchalkar, Head of Research at Axis Securities, pointed out that the Nifty dropped 205 points on Friday, marking its biggest single-day percentage fall in over a month. "Technically speaking, Friday's candle had a long upper shadow and a close near the lows, and that's weak behavior," he said. Several companies are expected to report their first-quarter results today. These include HCL Technologies, Authum Investment & Infrastructure, Tata Technologies, Ola Electric Mobility, Tejas Networks, Rallis India, Benares Hotels, Kesoram Industries, and Royal India Corporation. "The area between 25,000 and 25,127 is now a critical support. Bulls must defend this and push the index above 25,340 to reverse the ongoing dip. The market has closed below a short-term rising channel, so if it slips below 25,100, we may see a test of the 24,900-25,000 zone where another support channel lies." Sunil Gurjar, SEBI-registered analyst and founder of Alphamojo Financial Services, echoed similar concerns. He said, "The markets are currently experiencing a significant sell-off, driven primarily by three factors: weak Q1 earnings expectations, pressure on tech stocks, and broader valuation concerns." He added that Nifty's key reversal level is now 24,650. If the index falls below 25,300 and does not find support at 24,650, it could sharply decline to 23,855. In other Asian markets, Japan's Nikkei 225 and Taiwan's weighted index were down by 0.25 per cent and 0.74 per cent, respectively. However, most other indices opened higher, with Singapore's Straits Times gaining 0.26 per cent and South Korea's KOSPI rising by 0.23 per cent. (ANI)
Economic Times
an hour ago
- Economic Times
India's growth cycle bottoming out; interest rate, decline in crude prices & normal monsoon support growth ahead: HSBC
Synopsis HSBC Mutual Fund reports India's economic growth may be bottoming out, fueled by favorable interest rates, liquidity, lower crude oil prices, and a normal monsoon forecast. While global trade uncertainties pose a risk, sustained government spending, increased private investments, and real estate recovery are expected to drive medium-term investment growth. Despite global challenges, India's GDP grew 7.4% in Q4FY25. ANI India's growth cycle bottoming out; interest rate, decline in crude prices & normal monsoon support growth ahead: HSBC India's economic growth cycle may be bottoming out, supported by a combination of favorable macroeconomic factors such as the interest rate and liquidity cycle, a decline in crude oil prices, and a forecast of a normal monsoon, according to a report by HSBC Mutual report highlighted that these supportive factors could help drive a pick-up in growth in the coming quarters."We believe growth cycle in India may be bottoming out. Interest rate and liquidity cycle, decline in crude prices and normal monsoon are all supportive of a pick-up in growth going forward," the report global trade related uncertainties are expected to remain a headwind to private capital expenditure in the near term, the report expressed optimism over the country's investment report expects India's investment cycle to be on a medium-term uptrend. This will be driven by sustained government spending on infrastructure and manufacturing, an increase in private investments, and a recovery in the real estate sector. In addition, the report pointed out that higher private sector investments in renewable energy and related supply chains, localization of higher end technology components, and India becoming a more meaningful part of global supply chains could support faster economic the markets front, the report noted that Nifty valuations have moved to a premium compared to their 5-year and 10-year averages following the recent rally. However, the fund remains constructive on Indian equities due to a robust medium-term growth report also acknowledged the challenges in the global macro environment, including heightened geopolitical and economic uncertainties.A key concern it raised was the announcement of reciprocal tariffs by the US administration, which could significantly affect both US and global growth if the tariffs remain in the challenges, the report stated that India's GDP growth has accelerated further to 7.4 per cent year-on-year in report also noted that the government has made efforts to address the slowdown in private consumption, particularly through income tax rate cuts announced in the Union the US dollar weakening and crude oil prices declining, the report believed that the space for further policy easing has expanded. The forecast of an above-normal monsoon is also expected to be a positive driver for rural demand. (ANI)
Time of India
2 hours ago
- Time of India
India's growth cycle bottoming out; interest rate, decline in crude prices & normal monsoon support growth ahead: HSBC
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's economic growth cycle may be bottoming out, supported by a combination of favorable macroeconomic factors such as the interest rate and liquidity cycle, a decline in crude oil prices, and a forecast of a normal monsoon, according to a report by HSBC Mutual Fund The report highlighted that these supportive factors could help drive a pick-up in growth in the coming quarters."We believe growth cycle in India may be bottoming out. Interest rate and liquidity cycle, decline in crude prices and normal monsoon are all supportive of a pick-up in growth going forward," the report global trade related uncertainties are expected to remain a headwind to private capital expenditure in the near term, the report expressed optimism over the country's investment report expects India's investment cycle to be on a medium-term uptrend. This will be driven by sustained government spending on infrastructure and manufacturing, an increase in private investments, and a recovery in the real estate addition, the report pointed out that higher private sector investments in renewable energy and related supply chains, localization of higher end technology components, and India becoming a more meaningful part of global supply chains could support faster economic the markets front, the report noted that Nifty valuations have moved to a premium compared to their 5-year and 10-year averages following the recent rally. However, the fund remains constructive on Indian equities due to a robust medium-term growth report also acknowledged the challenges in the global macro environment, including heightened geopolitical and economic uncertainties.A key concern it raised was the announcement of reciprocal tariffs by the US administration, which could significantly affect both US and global growth if the tariffs remain in the challenges, the report stated that India's GDP growth has accelerated further to 7.4 per cent year-on-year in report also noted that the government has made efforts to address the slowdown in private consumption, particularly through income tax rate cuts announced in the Union the US dollar weakening and crude oil prices declining, the report believed that the space for further policy easing has expanded. The forecast of an above-normal monsoon is also expected to be a positive driver for rural demand. (ANI)
