Office leasing across India’s top seven cities increased by 7% year on year in the first nine months of 2026, driven by expanding occupier demand, global capability centres, and rising flexible workspace popularity, according to Colliers.
Office leasing across India’s top seven cities rose 7% year on year to 54.4 million square feet in the first nine months of 2026, driven by steady occupier expansion, demand from global capability centres and rising interest from flexible workspace operators, according to Colliers. The property consultant said Grade A office demand reached 18.7 million square feet in the third quarter, a recent record for that period, and was 7% higher than in the previous quarter.
Bengaluru remained the country’s biggest office market in the period, with 15.7 million square feet of leasing, or 29% of total demand. Hyderabad followed with 9.4 million square feet, a 47% increase from a year earlier, while Delhi-NCR recorded 8.3 million square feet. Mumbai, Pune and Chennai posted 7.1 million, 6.9 million and 6 million square feet, respectively. Colliers said five of the seven markets recorded annual growth in leasing over the nine months.
The consultancy also said flexible office space continued to gain momentum, with leasing up 37% to 12.6 million square feet in the first nine months, while conventional leasing was broadly flat at 41.8 million square feet. Technology companies accounted for nearly 16 million square feet of demand, followed by banking, financial services and insurance firms, and engineering and manufacturing groups. New supply edged up to 41.7 million square feet over the period, and vacancy stood at about 16% at the end of the third quarter.
Looking ahead, Colliers said annual transactions in India’s major office markets could reach 75 million to 80 million square feet in 2026. In a separate forecast, the firm projected Grade A demand of 70 million to 75 million square feet next year, with new supply of 60 million to 65 million square feet. It said Bengaluru and Hyderabad were each likely to cross 10 million square feet of demand and supply in 2026, underscoring their continuing dominance in the market.
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