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Office space leasing increased by 89% QoQ in Q3 2021: Colliers

1536 Office space lease

Hyderabad tipped Bengaluru to become the most dominant market in Q3 2021

Gurugram, 21 October 2021 – The top six cities of India noted about 10.3 million sq ft of office gross absorption in Q3 2021, the highest volume recorded since Q1 2020. After a devastating pandemic second wave in the second quarter, the overall absorption numbers rose by 89% QoQ as occupiers planned for a gradual re-entry and closed deals that were on-hold, leveraging tenant favourable market dynamics.  IT sector driven cities Hyderabad, Bengaluru and Pune accounted for 62% of gross absorption in Q3 2021. With increased number of fully vaccinated employees returning to their workplaces coupled with fewer restrictions on mobility, the office market is showing strong signs of revival.

Q3 2021


Gross Absorption*







Delhi NCR















* in million sq feet

“The quarter has brought in much-needed cheer for the market. Large deals made a comeback, led by demand from flexible workspace operators. Decision-making by occupiers has become quicker than in 2020. We can expect the optimism to strengthen over the upcoming quarters, provided there is no third wave. Occupiers who were exploring renewal options have begun looking for fresh space,” said Ramesh Nair, Chief Executive Officer | India & Managing Director, Market Development | Asia, Colliers.


Hyderabad emerged as market leader in terms of office sector demand in Q3

After an average performance in Q2 2021, Hyderabad emerged as one of the resilient cities in terms of demand supply dynamics. For the first time, Hyderabad had the maximum share in leasing volume at 2.5 million sq ft surpassing Bengaluru, as occupiers focussed on large block deals and even leasing entire buildings. BFSI and Flexible workplace sectors had the maximum share in leasing volume accounting for 66% of the total demand in Hyderabad. Rai Durg saw the maximum leasing traction accounting for 53% of the demand, while Hitec City contributed 40%. On a YTD basis, Bengaluru continues to be the market leader.

Robust leasing activity observed in the flexible workspace sector

Leasing share by flexible workspace operators also rose in Q3 2021 owing to high demand from occupiers looking for managed spaces and short-term leases to tide over uncertain times. Share of flexible workspaces in leasing increased to 26% in Q3 2021. Leading flexible workspace operators focussed on signing large block deals exceeding 100,000 sq ft in almost all major cities seeing increased interest from corporates for managed spaces. Pune accounted for the highest share in flexible workspace, followed by Hyderabad.

Highest supply since Q2 2020

The quarter saw the highest supply since Q2 2020 at 10.8 million sq feet in Q3 2021 with Hyderabad and Pune contributing the maximum share at 29% and 25% respectively. The second wave did not have a major impact on the construction activity. Developers continued to focus on leasing existing stock and received OCs for buildings with pre-commitments.

Media Contact:

Sukanya Dasgupta

Director & Head, Marketing & Communications| India

+91 9811867682


Riddhi Vira

Manager, Public Relations | India

+91 9619776362


About Colliers

Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more about how we accelerate success at, Twitter @Colliers or LinkedIn.

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Ramesh Nair

Chief Executive Officer | India

Managing Director, Market Development | Asia


With a diverse experience of over 24 years, Ramesh’s career has been focused on driving transformational change and delivering real estate solutions to domestic and multinational owners, investors and occupiers across India and South Asia.

As the Chief Executive Officer (CEO), India & Managing Director, Market Development, Asia, Ramesh is responsible for the overall direction, strategy, and growth of the India’s business. His key responsibilities include driving long-term sustainable and profitable growth for the company along with developing company’s short-term and long-term strategy.

He also drives business development and key relationship management across Asia to expand our client base and identify new service lines and opportunities to accelerate success.

Prior to joining Colliers, Ramesh was the CEO & Country Head of JLL India where he led a team of ~12,000 diverse professionals in India and South Asia. During his 21-year journey at JLL, Ramesh held numerous senior leadership roles and worked across asset classes such as office, land, retail, residential, warehousing and logistics, industrial, data centres and hotels.

While leading businesses through dynamic and changing growth cycles in the industry, Ramesh consistently produced stable revenue and profit growth backed by building cross-functional teams and capabilities that exceed expectations. Under his leadership, JLL India delivered steady revenues of over USD 600mn.

Over the years, Ramesh has conceptualized and successfully launched many new specializations and enhanced service offerings to clients to ensure maximum market penetration. His core capabilities include driving results, strategic thinking, leading people, leading change, and developing organisational capability.

A strong believer in the value of education, he has been a guest lecturer at prestigious institutes such as IIM Ahmedabad, IIM Kolkata and ISB Hyderabad.


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