Office space demand across India’s top seven markets remained firm during the first nine months of 2026, with cumulative Grade A leasing reaching 54.4 million sq ft, up 7 per cent year-on-year (YoY), according to Colliers India.

Q3 2026 recorded 18.7 million sq ft of Grade A space uptake, marking a 7 per cent increase quarter-on-quarter (QoQ) and 9 per cent YoY. The growth was supported by occupier expansion across sectors, along with demand from Global Capability Centres (GCCs) and flex space operators.

Bengaluru led leasing during January-September 2026 with 15.7 million sq ft, accounting for 29 per cent of overall demand. Hyderabad followed with 9.4 million sq ft, up 47 per cent YoY, while Delhi NCR recorded 8.3 million sq ft. Mumbai, Pune and Chennai each registered leasing volumes of 6-8 million sq ft during the period.

“Office space demand in the country has remained remarkably consistent in the first three quarters of 2026, even though a minor blip was evident during Q2 on account of external volatilities,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India. He added that transactions across major office markets could potentially reach 75-80 million sq ft in 2026.

Flex space operators recorded 12.6 million sq ft of leasing during the first nine months, a 37 per cent YoY increase. Bengaluru and Delhi NCR led flex leasing with 2.8 million sq ft each. Flex space uptake during Q3 alone reached around 4 million sq ft, up 49 per cent YoY.

Conventional office leasing remained largely stable at 41.8 million sq ft during January-September 2026. Technology occupiers accounted for nearly 16 million sq ft, followed by BFSI and engineering and manufacturing companies. Together, these three sectors represented nearly three-fourths of conventional space uptake.

New office supply across the seven markets reached 41.7 million sq ft during the first nine months, up 1 per cent YoY. Q3 witnessed 19.2 million sq ft of completions, rising 79 per cent QoQ and 16 per cent YoY. Hyderabad led quarterly additions with 6.7 million sq ft, followed by Bengaluru with 5.4 million sq ft.

Overall office vacancy stood at around 16 per cent at the end of Q3 2026. Meanwhile, average rentals across the top seven markets increased by 7 per cent YoY, supported by sustained demand for superior and green-certified developments.