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Office Net Leasing Falls 20% as Supply Limits Choices
Companies leased less new office space overall in eight Indian cities during the first nine months of 2026 than in the same period last year.
The total was 36.7 million square feet, down from 46 million.
Cushman & Wakefield said fewer suitable new offices and a particularly strong previous year helped explain the drop.
But all leasing activity, including renewals and advance bookings, reached a record 64.6 million square feet.
Five cities had lower net leasing, while Bengaluru, Hyderabad and Ahmedabad had increases.
Bengaluru had the most, at 11 million square feet.
The company said office demand remains healthy, and more space was completed in the September quarter.
It also said businesses are planning earlier and considering locations beyond established office hubs.
Net office leasing across eight major Indian cities fell 20% to 36.7 million sq ft in January-September 2026, from 46 million a year earlier.
Cushman & Wakefield attributed the decline to limited additions of quality office space and comparison with a strong 2025 base.
Gross leasing rose 1% to a record 64.6 million sq ft, including new leases, renewals and pre-leasing.
Net leasing declined in Mumbai, Delhi-NCR, Pune, Chennai and Kolkata, while it increased in Bengaluru, Hyderabad and Ahmedabad.
The consultant reported 14.1 million sq ft of net absorption in the third quarter and said September-quarter completions could add capacity.
- Who
- Cushman & Wakefield reported the figures; businesses leasing office space are the occupiers discussed.
- What
- Net office leasing across eight major cities fell 20% year over year to 36.7 million sq ft, while gross leasing rose 1% to 64.6 million sq ft.
- Where
- Eight major Indian cities: Mumbai, Delhi-NCR, Pune, Chennai, Kolkata, Bengaluru, Hyderabad and Ahmedabad.
- When
- January-September 2026; the data was published October 10, 2026.
- Why
- Cushman & Wakefield cited limited fresh supply of quality workspaces and comparison with a strong 2025 base.
Cautious reading
Resilient-market reading
Meaning of lower net leasing
Cautious reading
Net leasing fell 20% year over year, with the consultant citing limited quality-space supply and a strong prior-year base.
Resilient-market reading
Cushman & Wakefield executives said occupier demand remained healthy; gross leasing reached a record 64.6 million sq ft.
Capacity for future growth
Cautious reading
Limited supply additions in the first half constrained occupier options in several markets.
Resilient-market reading
The consultant said September-quarter completions would create capacity, while pre-commitments and interest in a broader range of locations were gaining traction.
Key facts
- Net leasing
- 36.7 million sq ft in January-September 2026, down from 46 million sq ft a year earlier.
- Gross leasing
- 64.6 million sq ft, up 1% and a record for the first nine months of a year.
- Third-quarter net absorption
- 14.1 million sq ft.
- Cities with declines
- Mumbai, Delhi-NCR, Pune, Chennai and Kolkata.
- Cities with increases
- Bengaluru, Hyderabad and Ahmedabad.
- Largest market
- Bengaluru recorded 11 million sq ft of net leasing, up 16% year over year.
- Stated factors behind net decline
- Limited fresh supply of quality workspaces and a strong 2025 comparison base.
Quotes
Anshul Jain
Cushman & Wakefield Chief Executive for India, SEA, MEA & APAC Office and Retail
“With 64.6 million sq ft of gross 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.”
livemint.com
thehindubusinessline.com
“India's office market continues to see healthy occupier demand, with net absorption reaching 14.1 million sq ft during the third quarter and 36.7 million sq ft during the first nine months of the year.”
livemint.com
thehindubusinessline.com
Sources
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