Office leasing across India’s top seven markets rose 7% year-on-year to 54.4 million sq ft during January-September 2026, reflecting continued demand from companies, Global Capability Centres (GCCs), technology firms and flexible workspace operators, according to a report by property consultant Colliers.The latest data indicates that India’s commercial real estate market has maintained strong momentum through the first nine months of the year, with Grade A office demand reaching a record level for the third quarter in recent years.Key HighlightsIndia’s office leasing reached 54.4 million sq ft during January-September 2026.Leasing increased 7% compared with the same period in 2025.Bengaluru led the seven major markets with 15.7 million sq ft.Hyderabad recorded 9.4 million sq ft, up 47% year-on-year.Delhi-NCR recorded 8.3 million sq ft of office leasing.Flexible workspace leasing increased 37% to 12.6 million sq ft.Annual office transactions could reach 75-80 million sq ft in 2026.Overall office vacancy stood at around 16% at the end of Q3.India Office Leasing Reaches 54.4 Million Sq FtAccording to the Colliers report, office leasing across India’s seven major markets increased to 54.4 million sq ft in the first nine months of 2026.Grade A office demand during the July-September quarter stood at 18.7 million sq ft, representing a 7% increase from the previous quarter and a 9% rise from the year-ago period. Colliers described it as a record high for a third quarter in recent years.The growth has been supported by corporate expansion, demand from GCCs and increasing adoption of flexible workspaces.Bengaluru Leads India Office LeasingBengaluru remained the largest office leasing market during January-September, accounting for nearly 29% of total demand.The city recorded 15.7 million sq ft of leasing during the nine-month period. Hyderabad followed with 9.4 million sq ft, registering a significant 47% year-on-year increase.Delhi-NCR recorded 8.3 million sq ft, while Mumbai, Pune and Chennai recorded 7.1 million sq ft, 6.9 million sq ft and 6 million sq ft, respectively.Five of the seven major markets recorded year-on-year growth during the January-September period.Flexible Workspace Demand GrowsFlexible workspace operators continued to expand their presence in India’s office market.Flex space leasing increased 37% year-on-year to 12.6 million sq ft during the first nine months of 2026. Conventional office leasing, meanwhile, remained broadly stable at 41.8 million sq ft.The rise in flexible workspace demand reflects the changing requirements of companies seeking scalable office solutions and more adaptable workplace arrangements.Technology Sector Drives Office DemandTechnology companies accounted for nearly 16 million sq ft of office demand during the period, making the sector a major contributor to India's office leasing activity.Banking, financial services and insurance companies, along with engineering and manufacturing firms, were also important sources of demand.The continued expansion of GCCs is another major factor supporting office demand as multinational companies increase their operations in areas such as technology, research, engineering, finance and analytics.New Office Supply and VacancyNew office supply across the major markets rose marginally to 41.7 million sq ft between January and September 2026.Despite strong leasing activity, overall office vacancy remained around 16% at the end of the third quarter, according to Colliers.The combination of new supply and sustained demand will remain an important factor for India's commercial real estate market during the final quarter.Office Transactions Could Reach 80 Million Sq FtColliers expects annual office transactions across India’s major markets to reach between 75 million and 80 million sq ft in 2026.The strong January-September performance and continued demand in the final quarter could help the market maintain its growth momentum through the end of the year.For developers and commercial property owners, sustained demand from GCCs, technology companies and flexible workspace operators could remain an important driver of office market activity.What Does the Office Leasing Growth Mean for India?The increase in office leasing points to continued corporate expansion across India's major business centres.Growing office demand can also support related sectors such as construction, commercial property development, interiors, facilities management, transportation and hospitality.The data also highlights the growing importance of Bengaluru, Hyderabad and Delhi-NCR as major corporate and technology hubs, while the rise in flexible workspace demand indicates that companies continue to adapt their office strategies.What Happens Next?India's office leasing market enters the final quarter of 2026 with strong demand momentum.If the current trend continues, total office transactions could approach the 75-80 million sq ft range projected by Colliers. The performance of GCCs, technology companies, financial services firms and flexible workspace operators will remain important factors for the commercial real estate market.
