Bengaluru: Office space demand across India’s top seven markets remained firm throughout the first three quarters of 2026, pushing cumulative leasing to 54.4 million sq ft, a 7% Year-on-Year (YoY) rise. The growth momentum continues to be driven by occupier expansion across multiple demand sectors, coupled with strong space uptake from Global Capability Centers (GCCs) and flex space operators. On a quarterly basis, Q3 2026 witnessed 18.7 million sq ft of Grade A demand, a record high for a third quarter in recent years. More importantly, quarterly leasing grew by a notable 7% compared to Q2 2026, demonstrating the resilience of Indian office market even amidst global uncertainties and moderating economic growth prospects.
At the city level, five out of seven cities witnessed an annual rise in gross leasing during the first nine months of 2026. Bengaluru continued to drive office demand, leading space uptake at 15.7 million sq ft, accounting for a 29% share during the nine-month period. Hyderabad followed with 9.4 million sq ft of space uptake during Jan-Sep 2026, reflecting a 47% YoY rise during the same period. Meanwhile, Delhi NCR, Mumbai, Pune & Chennai also witnessed healthy traction, with each of them witnessing leasing to the tune of 6-8 million sq ft during the first nine months of the year.
After a cautious second quarter, at 18.7 million sq ft, Grade A space uptake grew by 7% & 9% on a QoQ and YoY basis respectively during Q3 2026. Bengaluru continued to lead leasing volumes in Q3 at 5.2 million sq ft, followed by Delhi NCR & Pune. In fact, space uptake in Delhi NCR more than doubled to 3.3 million sq ft compared to the corresponding quarter of last year.
“Office space demand in the country has remained remarkably consistent in the first three quarters of 2026, even though a minor blip was evident during Q2 on account of external volatilities. Leasing activity in the third quarter has been particularly noteworthy at 18.7 million sq ft, a record high for Q3 in recent years. 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, wherein we could potentially see 75-80 million sq ft of transactions across the major office markets of the country,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.