- Gross Leasing Volume (GLV) across the top eight cities stood at ~22 MSF in Q3 2026, up 3% q-o-q
- GCCs leased 9.1 MSF during the quarter, accounting for 42% of total leasing activity
- BFSI emerged as the largest demand driver in Q3 2026 with a 24% share, followed by IT-BPM at 22%
- New completions reached an all-time quarterly high of 22.7 MSF, nearly doubling from the previous quarter
India’s office market continued to see strong momentum in Q3 2026, with net absorption across the top eight cities reaching 14.1 million square feet (MSF), according to Cushman & Wakefield’s Q3 2026 Office MarketBeat report. This marked a 26% quarter-on-quarter (q-o-q) increase, supported by healthy occupier demand and a significant increase in new office completions during the quarter.
On a year-on-year (y-o-y) basis, net absorption moderated by 18% against a strong Q3 2025 base, which saw the highest quarterly absorption of the year.
*Net Absorption refers to the net change in occupied space within a given market over a specific period, calculated as the difference between occupied stock at the end of the current period and the previous period.
At the city level, Hyderabad and Bengaluru led absorption during the quarter. Hyderabad recorded 4.1 MSF of net absorption, accounting for 29% of the pan-India total and marking its highest quarterly level since Q4 2021. Bengaluru followed closely with 4.02 MSF, contributing another 28.6% of overall absorption.
Year-to-date (YTD), net absorption across the top eight cities stood at 36.7 MSF.
Net-absorption figures across 8 cities in MSF
|
City |
Q3 2026 |
|
Mumbai |
1.0 |
|
Delhi NCR |
2.2 |
|
Bengaluru |
4.0 |
|
Chennai |
1.0 |
|
Pune |
0.9 |
|
Hyderabad |
4.1 |
|
Kolkata |
0.3 |
|
Ahmedabad |
0.4 |
|
PAN India |
14.1 |
Leasing Trends
Gross Leasing Volume (GLV) across the top eight cities stood at ~22 MSF in Q3 2026, registering a 3% q-o-q increase. Bengaluru continued to lead leasing activity with 5.2 MSF, accounting for 24% of the quarterly volume. It was followed by Hyderabad at 4.2 MSF, Mumbai at 3.9 MSF and Delhi NCR at 3.8 MSF, with each of these markets contributing between 17% and 19% of pan-India leasing.
*GLV, factors in all leasing activity in the market, including fresh take-up, open market renewals by occupiers as well as pre-leasing, and is an indication of overall market activity.
YTD 2026 leasing reached 64.6 MSF, the highest-ever volume recorded during the first nine months of any year, underscoring the sustained depth of occupier activity across India’s major office markets. Leasing during the first nine months has already reached approximately 74% of the full-year 2025 volume, keeping the market on track for another strong year of activity.
Fresh leasing continued to account for the bulk of YTD activity at ~75%. At the same time, the share of pre-commitments increased to ~12%, reflecting occupiers’ focus on securing quality office space ahead of project completions.
GLV figures across 8 cities in MSF
|
City |
Q3 2026 |
|
Mumbai |
3.9 |
|
Delhi NCR |
3.8 |
|
Bengaluru |
5.2 |
|
Chennai |
2.0 |
|
Pune |
2.0 |
|
Hyderabad |
4.2 |
|
Kolkata |
0.6 |
|
Ahmedabad |
0.2 |
|
PAN India |
21.9 |
GCCs Continue to Drive Leasing Activity
Global Capability Centres (GCCs) remained a key driver of office demand, leasing 9.1 MSF in Q3 2026 and accounting for 42% of total quarterly GLV. Bengaluru and Pune saw particularly strong GCC concentration, with the segment contributing approximately 65% of leasing activity in each market.
YTD GCC leasing reached 25.3 MSF, accounting for 39% of total leasing. GCCs accounted for more than half of leasing activity in Bengaluru, Chennai and Pune, highlighting the broadening geographic footprint of GCC demand across India’s major office markets.
Sectoral activities
From a sectoral perspective, BFSI emerged as the largest demand driver in Q3 2026, accounting for 24% of total leasing activity, followed by IT-BPM at 22%. On a YTD basis, BFSI leasing stood at 13.2 MSF, registering a 34% YoY increase. IT-BPM occupiers leased approximately 14 MSF, although the sector’s share of overall leasing moderated to 22%, from 33% in YTD 2025. Meanwhile, Engineering & Manufacturing recorded its highest-ever YTD leasing volume at 10.2 MSF.
Flexible workspace operators leased 3.5 MSF in Q3 2026, contributing 16% to pan-India GLV. On a YTD basis, flexible workspaces recorded their highest-ever leasing volume of 11.9 MSF, up 42% YoY and accounting for 18% of total leasing activity.
Supply, vacancy and rental growth
New office completions reached an all-time quarterly high of 22.7 MSF in Q3 2026, nearly doubling from the previous quarter. Bengaluru accounted for 43% of the quarterly additions, followed by Hyderabad at 38%, with the two markets together contributing more than four-fifths of new supply during the quarter.
YTD supply stood at 43.3 MSF, reaching 82% of the entire supply added in 2025, putting 2026 on course to become the highest-supply year on record.
Against the backdrop of record quarterly supply additions, pan-India vacancy increased by 63 basis points q-o-q to 14.37%, marking the first increase after twelve consecutive quarters of compression.
Rental growth continued across most major markets during the quarter despite the increase in overall vacancy, with pan-India rents rising 2% q-o-q. The sustained rental momentum alongside significant new supply additions reflects continued occupier demand for quality office spaces across key markets.
Anshul Jain, Chief Executive – India, SEA, MEA & APAC Office and Retail, Cushman & Wakefield, commented
“India’s office market remains structurally strong, and the sustained levels of absorption and leasing we are seeing are a clear reflection of that. With 64.6 MSF of leasing in the first nine months of 2026, the highest ever for this period, the market continues to demonstrate remarkable depth and resilience, despite persistent macroeconomic and geopolitical uncertainty. GCCs have been pivotal to this momentum, as global enterprises continue to expand both their presence and capabilities in India. This demand is underpinned by fundamentals that remain firmly intact—a deep talent pool, cost competitiveness and India’s growing importance within global business strategies. As occupiers continue to take a longer-term view of their portfolios, we remain confident in the sustained growth trajectory of India’s office market.”
Veera Babu, Executive Managing Director, Tenant Representation - India, Cushman & Wakefield, said:
“India’s office market continues to see healthy occupier demand, with net absorption reaching 14.1 MSF during the quarter. While limited supply in the first half of the year had constrained occupier options across several markets, the significant increase in completions during Q3 brought much-needed quality space into the market, creating capacity for the next phase of expansion. We are also seeing occupiers plan further ahead, with pre-commitments gaining traction and businesses considering a broader set of locations, including those beyond established office hubs, as part of their growth plans. As businesses take a longer-term view of their real estate portfolios, we expect asset quality, connectivity and the ability to support evolving workplace requirements to become increasingly important differentiators. ”
