India office leasing rises 7 pc to 54.4 million sq ft in Jan-Sep
Office space leasing across India's top seven markets rose 7 per cent year-on-year to 54.4 million square feet in the first nine months of 2026 because of sustained occupier expansion, demand from global capability centres and growing uptake by flexible workspace operators, a report showed on Monday.
According to a report by property consultant Colliers, Grade A office demand in the third quarter reached 18.7 million sq ft, a record high for a third quarter in recent years and 7 per cent higher than the previous quarter.
The demand was also up 9 per cent from a year earlier, it added.
City-wise, Bengaluru led leasing activity during January-September with 15.7 million sq ft, accounting for 29 per cent of total demand, while Hyderabad followed with 9.4 million sq ft, up 47 per cent year-on-year.
Meanwhile, Delhi-NCR recorded 8.3 million sq ft of leasing during the period. Mumbai, Pune and Chennai saw demand of 7.1 million sq ft, 6.9 million sq ft and 6 million sq ft, respectively.
Moreover, five of the seven markets recorded annual growth in leasing during the nine-month period, according to the report.
The report further noted that annual office transactions across the major markets could reach 75-80 million sq ft in 2026.
"With cumulative Grade A space uptake already at 54.4 million sq ft, and demand prospects looking strong in the final quarter, we are well poised for a stronger 2026," said Arpit Mehrotra, managing director, office services, Colliers India.
In addition, flex space leasing continued to gain momentum, rising 37 per cent year-on-year to 12.6 million sq ft in the first nine months.
Apart from that, conventional leasing was largely unchanged at 41.8 million sq ft.
Technology companies accounted for nearly 16 million sq ft, followed by banking, financial services and insurance firms and engineering and manufacturing companies.
Meanwhile, new office supply rose marginally to 41.7 million sq ft in January-September.
However, overall vacancy stood at around 16 per cent at the end of the third quarter, Colliers said.
