New Delhi, July 25
The Information Technology-enabled Services (ITeS) and IT sectors in India continue to dominate the commercial real estate (CRE) leasing segment, accounting for 50 per cent of absorption during April-June (Q2 2025), up from 36 percent in the previous quarter, a report said on Friday.
Flex spaces trailed behind, accounting for 14 per cent of the total absorption, an increase from 9 per cent in the previous quarter. The area absorbed by flex spaces increased by 68 per cent over the previous quarter. The southern cities of Bengaluru, Chennai and Hyderabad accounted for 80 per cent of absorption in metro cities, the report from CRE firm Vestian said.
Despite the surge in flex spaces, the IT-ITeS (Information Technology-enabled Services) sector remains the leading force in this segment, accounting for 9.4 million square feet in Q2 2025. Half of this leasing came from the localities of Bengaluru's Yeshwantpur, Hyderabad's Nanakramaguda, and Mumbai's Airoli.
The top seven cities recorded 36.75 million sq ft of absorption from the IT-ITeS in H1 2025, registering a 21 per cent increase over the same period year on year (YoY). BFSI follows closely behind with six per cent of absorption in this segment, down from 20 per cent in the previous quarter.