Office Leasing Rises 15% to 18.3 Mn Sq Ft Across Seven Cities in Q1: Colliers

India’s commercial office real estate market has opened 2026 with strong momentum, reflecting sustained corporate expansion and resilient occupier sentiment across major business hubs. According to a recent report by Colliers, gross office leasing across the country’s top seven cities rose 15 per cent year on year to 18.3 million square feet during the January to March quarter.

The strong performance was largely driven by demand from technology companies, banking and financial services firms, and the continued expansion of Global Capability Centres, which have emerged as a key growth engine for India’s office market. Bengaluru and Hyderabad together accounted for nearly half of the total leasing volume, underlining their position as the country’s leading commercial office destinations.

Bengaluru remained the standout market not only in terms of leasing but also fresh supply. The city led new office completions with a 47 per cent share of total supply additions during the quarter. Chennai and Mumbai also recorded notable completions, with each city adding around 1.5 million square feet of new Grade A office space. This steady supply pipeline is expected to support future demand from both domestic and multinational occupiers.

Flexible workspaces continued to gain traction, with leasing by flex space operators rising sharply by 77 per cent year on year to nearly 4 million square feet. This trend highlights the growing preference for scalable and hybrid office solutions among corporates, startups and GCC operators.

Another positive sign for the sector is the decline in vacancy levels. With demand outpacing fresh supply in several markets, vacancy across the top seven cities fell to 15.3 per cent, while rentals witnessed an annual increase of around 6 per cent. This points to strengthening fundamentals in India’s commercial real estate sector and sets a positive tone for the rest of 2026.