India’s office market demonstrated resilience in Q1 2026, supported by steady annual growth in gross leasing volumes despite a seasonal moderation and elevated global uncertainty. Healthy demand from global multinationals, continued expansion of global capability centres, and sustained interest from flex operators underpinned leasing activity across top office markets. With supply additions moderating, vacancies tightened further and office rentals continued their upward trajectory across major cities.
Key Highlights from Q1 2026
- Gross leasing volume stood at 21.9 MSF across the top 8 cities, registering 13% growth on an annual basis.
- Mumbai led office leasing activity with a 30% share, followed by Bengaluru at 23% and Hyderabad at 14%.
- IT-BPM remained the largest demand driver with a 23% share, while BFSI followed closely at 21%. Flex operators and Engineering and Manufacturing contributed 18% and 15%, respectively.
- New Grade A office completions totaled 8.8 MSF, the lowest level in seven quarters, led by Bengaluru, Delhi NCR, and Chennai.
- Net absorption reached 11.5 MSF, reflecting continued expansion by GCCs and large occupiers.
