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India Office Leasing Rises 7% to 54.4 Million Sq Ft
Companies rented more office space in India during the first nine months of 2026.
The total reached 54.4 million square feet, which was 7% more than a year earlier.
Bengaluru had the most leasing, followed by Hyderabad.
Hyderabad’s leasing grew especially quickly, rising 47% from the previous year.
Demand for high-quality Grade A offices was also strong in the third quarter.
Flexible offices, which companies can use without taking traditional long leases, grew by 37%.
Technology companies rented the most space among the listed industries.
Colliers said total office transactions could reach 75-80 million square feet in 2026.
Office leasing across India’s top seven markets rose 7% year-on-year to 54.4 million sq ft during January-September 2026.
Bengaluru led activity with 15.7 million sq ft, followed by Hyderabad at 9.4 million sq ft.
Grade A office demand reached a record 18.7 million sq ft in the third quarter, up 9% year-on-year.
Flexible workspace leasing increased 37% to 12.6 million sq ft, while conventional leasing remained largely unchanged at 41.8 million sq ft.
Colliers projected annual office transactions could reach 75-80 million sq ft in 2026, despite overall vacancy of around 16%.
- Who
- Businesses, including technology, banking, financial services, insurance, engineering and manufacturing companies, leased office space; Colliers reported the figures.
- What
- Office leasing in India’s top seven markets rose 7% year-on-year to 54.4 million sq ft during January-September 2026.
- Where
- India’s top seven office markets, including Bengaluru, Hyderabad, Delhi-NCR, Mumbai, Pune and Chennai.
- When
- January-September 2026, with third-quarter figures also reported.
- Why
- Demand was supported by occupier expansion, global capability centres and increasing use of flexible workspace operators.
Key facts
- Leasing volume
- 54.4 million sq ft in January-September 2026
- Year-on-year growth
- 7% across the top seven markets
- Third-quarter Grade A demand
- 18.7 million sq ft, up 9% year-on-year
- Leading market
- Bengaluru, with 15.7 million sq ft and 29% of total demand
- Fast-growing listed market
- Hyderabad, with 9.4 million sq ft, up 47% year-on-year
- Flexible workspace leasing
- 12.6 million sq ft, up 37% year-on-year
- Overall vacancy
- Around 16% at the end of the third quarter
Quotes
Arpit Mehrotra
Managing director of office services at Colliers India
“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”
thehansindia.com
Sources
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