Archive · 28 Sep 2026
India Office Leasing Climbs 7% as Flexible Demand Expands
Companies rented more office space in India during the first nine months of 2026.
Leasing reached 54.4 million square feet across seven major markets.
Bengaluru had the most activity, while Hyderabad recorded especially strong growth.
In the third quarter, companies leased 18.7 million square feet.
Bengaluru, Delhi-NCR, Hyderabad and Kolkata grew during the quarter, while Mumbai, Pune and Chennai declined.
Flexible offices, which can be used more easily than traditional offices, became more popular.
Technology and financial-services companies were among the biggest users.
Colliers expects total office transactions to reach 75-80 million square feet in 2026.
Office leasing across India’s seven major markets rose 7% year-on-year to 54.4 million sq ft during January-September 2026.
Bengaluru led nine-month leasing with 15.7 million sq ft, followed by Hyderabad with 9.4 million sq ft.
Third-quarter gross leasing reached 18.7 million sq ft, up 9% year-on-year and the highest third-quarter figure in recent years.
Flexible workspace leasing rose 37% to 12.6 million sq ft, while conventional leasing remained largely unchanged at 41.8 million sq ft.
Colliers said 2026 office transactions could reach 75-80 million sq ft despite overall vacancy of about 16%.
- Who
- Businesses, technology companies, BFSI firms, engineering and manufacturing companies, and flexible-workspace operators; Colliers reported the figures.
- What
- Office leasing across India’s seven major markets increased 7% year-on-year to 54.4 million sq ft during January-September 2026.
- When
- January-September 2026, including the July-September third quarter.
- Where
- India’s seven major office markets: Bengaluru, Delhi-NCR, Hyderabad, Kolkata, Mumbai, Pune and Chennai.
- Why
- Leasing was supported by corporate expansion, global capability centres and growing demand for flexible and managed offices.
- Nine-month leasing
- 54.4 million sq ft, up 7% year-on-year
- Third-quarter leasing
- 18.7 million sq ft, up 9% year-on-year
- Leading market
- Bengaluru, with 15.7 million sq ft during January-September
- Hyderabad growth
- 9.4 million sq ft during January-September, up 47% year-on-year
- Flexible workspace
- 12.6 million sq ft, up 37% year-on-year
- New office supply
- 41.7 million sq ft during January-September
- Vacancy
- About 16% at the end of the third quarter
- 2026 projection
- Annual transactions could reach 75-80 million sq ft
