India Office Leasing Hits Record 61 Million Sq Ft in First Nine Months of 2026

India’s office real estate market has recorded its strongest-ever leasing performance for the first nine months of a year, with companies taking up 61.06 million square feet of office space between January and September 2026, according to a report by JLL.

The record activity highlights continued demand for commercial properties despite global economic uncertainty. The report also suggests that India’s annual office leasing could approach 100 million square feet over the next two to three years, supported by business expansion and growing demand from multinational companies.

Leasing activity gathered pace in the July to September quarter, with gross transactions reaching 23.17 million square feet. Several deals that had been delayed in the previous quarter were finalised during this period, signalling renewed confidence among occupiers.

Bengaluru remained the country’s leading office market, accounting for 33.4 per cent of leasing during the third quarter. Hyderabad followed with 19.6 per cent, while Delhi-NCR contributed 18.1 per cent. Mumbai accounted for 12.4 per cent. Bengaluru also led the nine-month performance, capturing 28 per cent of total leasing.

Global Capability Centres (GCCs) continued to be a major source of demand. These centres leased 26.2 million square feet during the first nine months of 2026, equivalent to 84 per cent of their total leasing in 2025. GCC demand grew 30.6 per cent year-on-year and represented 42.9 per cent of overall office leasing during the period.

Radha Dhir, Chief Executive Officer of JLL India, said companies were continuing to commit to expansion in India despite international uncertainties. Foreign occupiers accounted for 62 per cent of leasing, the highest share recorded in seven quarters.

Among occupier sectors, technology represented 25.6 per cent of third-quarter leasing, closely followed by banking, financial services and insurance at 25.3 per cent. The BFSI sector recorded its highest-ever quarterly leasing volume. Manufacturing and industrial companies contributed 16.1 per cent, while flexible workspace operators accounted for 15.5 per cent.

Flexible workspace providers leased a record 13.83 million square feet across India’s top seven cities during January to September. They accounted for 52 per cent of the office space taken up by domestic companies.

Net absorption, which measures the increase in occupied office space, reached 42 million square feet, up 5.3 per cent year-on-year. However, average vacancy across the top seven cities increased to 14.8 per cent in the third quarter, rising 30 basis points from the previous quarter.

The increase came as developers completed 43.7 million square feet of new office space, the highest quarterly supply recorded in the post-pandemic period.

The combination of record leasing, strong GCC demand and rising new supply points to a rapidly expanding office market. While vacancy levels will remain an important indicator to watch, the latest figures underline India’s growing role as a destination for global businesses and corporate expansion.