India’s seven largest office markets absorbed 54.4 million square feet of Grade A space in the first nine months of 2026, marking a 7% increase from the same period in 2025, Colliers India reported. The third quarter alone accounted for 18.7 million square feet in leases, reflecting a 7% quarterly rise and a 9% annual gain—the highest third-quarter volume in recent years.
Bengaluru led demand with 15.7 million square feet leased, representing 29% of the total. Hyderabad followed with 9.4 million square feet, a 47% year-over-year increase. Delhi NCR, Mumbai, Pune, and Chennai also saw growth, while Kolkata recorded 1 million square feet. Five of the seven markets experienced annual leasing increases.
In the third quarter, Bengaluru again topped the rankings with 5.2 million square feet leased, while Delhi NCR saw 3.3 million square feet, more than double the 3.3 million recorded in the same period last year. Pune followed closely with 3.2 million square feet, and Hyderabad and Mumbai added 2.2 million and 2.4 million, respectively.
Flexible workspace operators contributed 12.6 million square feet of leasing, a 37% annual increase, accounting for 23% of total demand. Bengaluru and Delhi NCR each recorded 2.8 million square feet in flexible leases, while Delhi NCR and Hyderabad both doubled their annual figures. Conventional leasing remained steady at 41.8 million square feet, with tech firms occupying 16 million square feet, 38% of total demand. Bengaluru and Hyderabad together captured over 55% of tech-sector leases, while Mumbai handled 30% of banking and financial services demand.
New office supply reached 41.7 million square feet year-to-date, a 1% annual increase. Third-quarter completions surged 79% to 19.2 million square feet, with Hyderabad adding 6.7 million and Bengaluru contributing 5.4 million. Bengaluru led total supply with 14.1 million square feet, followed by Hyderabad and Pune.
Colliers India noted that the consistent leasing activity through the first three quarters, despite a slower second quarter, indicates occupiers remain engaged despite broader economic challenges. If demand remains strong in the fourth quarter, the total 2026 absorption could reach between 75–80 million square feet.
