NEW DELHI: Colliers India is targeting an order book of ₹1,100 crore in 2025, up from a revenue of approximately ₹700 crore in the previous calendar year. The real estate services firm has reported a robust start to the year, with its leasing business already showing 20–25% growth over 2024.
Sankey Prasad, chairman and managing director in an exclusive interview with ETRealty said that the company remains bullish on India’s commercial real estate sector, citing strong fundamentals and continued demand despite global headwinds.
As part of its global integration strategy, Colliers is establishing a new Global Capability Centre (GCC) in Bengaluru. The facility, which is currently operating out of a smaller site, will soon be expanded into a larger, consolidated space. The GCC will serve Colliers’ international operations, with all roles being new hires rather than internal transfers. “This centre is purely for Colliers’ internal global requirements, aimed at cost optimisation and centralised support,” Prasad said.
Despite economic uncertainties and layoffs in key Western markets, India’s office market is projected to remain resilient in 2025. “We expect the gross office leasing this year to be in the range of 65–70 million sq ft, close to last year’s 66.5 million,” said Prasad. He noted that Q1 2025 alone recorded 15.9 million sq ft of leasing, signaling strong momentum.
Prasad attributes the sustained demand to key sectors like engineering, manufacturing, and BFSI, which are likely to account for 35–40% of office leasing. Technology firms, even amid hybrid work shifts, are expected to contribute another 25–30%, while flex space operators will continue to hold a 20% share. Select tier-2 and tier-3 cities may also attract leasing activity, driven by cost advantages and improved infrastructure.
Although widespread layoffs in the US and Europe have triggered fears of reduced expansion plans, Prasad noted that major firms in India have shown caution in real estate expansion since the pandemic. “Most companies did not expand their office footprint in proportion to headcount growth in the last few years,” he said. “This conservative strategy is now insulating them from overexposure as they realign workforce needs.”
He dismissed the idea of a major leasing slowdown unless there’s a global economic shock, stating that “many multinationals are still planning to take up more space by Q3 or Q4.” He also noted that Colliers’ own leasing pipeline has grown by 20–25% compared to last year.
Grade-A supply remains tight as leasing outpaces construction
Developers have been cautious in launching new commercial supply post-COVID, resulting in a shortage of top-tier, sustainable office stock. While some of the supply planned before the pandemic is now coming online, the pace of fresh additions remains limited.
This imbalance has created opportunities for redevelopment and upgradation of older Grade B and C assets. “We are actively advising on several such projects. There is strong occupier interest for Grade-A spaces, and quality continues to be a differentiator,” said Prasad.
A major driver of this demand is the Global Capability Centre (GCC) segment, which accounted for 6.5 million sq ft, or 41% of total leasing across top cities in Q1 2025. Colliers estimates that GCCs will lease 25–30 million sq ft this year, sustaining their share at 40–50% of total office demand.
Investment flow shows resilience, shift in strategy
While there has been a temporary dip in FDI inflows due to geopolitical and economic factors, Prasad noted that investor interest remains intact. “India saw $529 million in FDI into construction development in FY25 so far,” he said. “Family offices, in particular, are emerging as aggressive and flexible investors, often preferring hybrid equity-debt models to balance returns and risk.”
Platforms are increasingly being created between family offices and developers for long-term value creation. Colliers has seen private funding activity extending beyond office real estate into logistics, data centres, and townships, indicating broader investor confidence.
Branded developers consolidating residential market
In the residential sector, consolidation among top developers continues to intensify. Branded players now dominate launches and land acquisition, often at premium prices that smaller or mid-size builders cannot match. “Consumer trust, financial strength, and execution capabilities give these firms a clear edge,” said Prasad.
However, this trend is pushing up land prices and squeezing the viability of mid-income and affordable housing. While tier-2 cities may see targeted interventions, the widening affordability gap in tier-1 cities could lead to further strain on the supply side. “There’s a definite need to revisit development models to cater to mid-income demand,” he added.
