Bengaluru, Hyderabad Drive India’s Office Supply Growth as New Space Nearly Doubles

Bengaluru and Hyderabad are driving India’s office space expansion, with fresh supply in the two cities nearly doubling during the first nine months of 2026. Developers added 30.45 million square feet between January and September, compared with 14.72 million square feet in the same period last year, according to JLL India.

Across the country’s seven major office markets, fresh supply reached 43.66 million square feet, up from 38.84 million square feet a year earlier. Bengaluru and Hyderabad were the only cities among those tracked to record an increase.

Bengaluru’s new office supply more than doubled to 18.35 million square feet from 8.59 million square feet. Hyderabad recorded a 98 per cent rise to 12.10 million square feet from 6.13 million square feet. The other markets covered by JLL are Pune, Chennai, Mumbai, Delhi-NCR and Kolkata.

The expansion reflects demand from companies seeking premium workplaces, particularly technology businesses and global capability centres (GCCs). Gross leasing across the seven cities increased 8 per cent to a record 61.06 million square feet during January-September 2026.

Bengaluru remained India’s largest office leasing market, accounting for 28 per cent of the total. GCCs leased 26.2 million square feet during the nine-month period, equivalent to 84 per cent of the space they leased throughout 2025. They accounted for 42.9 per cent of overall office demand, while foreign occupiers contributed 62 per cent of leasing activity, JLL said.

GCCs are taking on specialised work in artificial intelligence, product engineering, research and innovation, beyond traditional support functions. This is increasing demand for Grade A offices that can accommodate larger teams and technology-intensive operations.

Flexible workspace operators leased 13.83 million square feet across the seven markets in the first nine months. The figure highlights demand for managed and flexible offices alongside conventional leasing. The vacancy rate across the seven cities stood at 14.8 per cent, lower than a year earlier.

The figures reinforce Bengaluru and Hyderabad’s position as destinations for office development and corporate expansion. As GCCs scale up and companies seek adaptable, high-quality workplaces, demand for Grade A space will remain important to both cities’ commercial property markets.