India Office Leasing Rises 7% to 54.4 Million Sq Ft in January-September 2026: Colliers

Office leasing across India’s top seven office markets remained strong during the first nine months of 2026, with gross leasing rising 7% year-on-year to 54.4 million sq ft, according to Colliers India.

Bengaluru continued to lead the market, accounting for the largest share of office space uptake during January-September. The city recorded 15.7 million sq ft of leasing, representing 29% of the total across the seven major markets.

Hyderabad followed with 9.4 million sq ft, registering a significant 47% year-on-year increase. Delhi-NCR, Mumbai, Pune and Chennai each recorded between 6 million sq ft and 8 million sq ft during the period.

The third quarter also saw healthy activity. Grade A office leasing reached 18.7 million sq ft, marking a 9% increase from the corresponding period last year and a 7% rise from the second quarter of 2026. Bengaluru led Q3 leasing with 5.2 million sq ft, followed by Delhi-NCR at 3.3 million sq ft and Pune.

Colliers said occupier expansion across several sectors, along with continued demand from Global Capability Centres (GCCs) and flexible workspace operators, supported the leasing momentum.

Flexible Workspace Demand Accelerates

Flexible workspace operators recorded particularly strong growth during the nine-month period. Leasing by the segment increased 37% year-on-year to 12.6 million sq ft, accounting for around 23% of overall office leasing.

Bengaluru and Delhi-NCR were the largest flexible workspace markets, with each recording 2.8 million sq ft of leasing. Flexible workspace demand in Delhi-NCR and Hyderabad more than doubled from the previous year.

Q3 flexible workspace leasing stood at around 4 million sq ft, up 49% year-on-year.

Technology Sector Leads Conventional Office Demand

Conventional office leasing remained broadly stable at 41.8 million sq ft during January-September 2026. Technology companies accounted for nearly 16 million sq ft, or around 38% of conventional leasing.

BFSI and engineering and manufacturing companies were the other major demand drivers. Together, the three sectors accounted for nearly three-fourths of conventional office demand.

Bengaluru and Hyderabad together contributed more than 55% of technology-sector conventional office leasing, while Mumbai accounted for around 30% of BFSI leasing.

New Office Supply

New office supply across the seven markets rose 1% year-on-year to 41.7 million sq ft during the first nine months of 2026. More than 19 million sq ft was completed during Q3 alone, up 79% from the previous quarter.

Hyderabad contributed around 6.7 million sq ft of Q3 completions, while Bengaluru accounted for 28%. During January-September, Bengaluru added 14.1 million sq ft of new office supply, roughly one-third of total completions.