Large office space transactions continued to drive India’s commercial leasing market in Q1 2026, with deals of 100,000 sq ft and above accounting for 65% of total leasing activity across the country’s top eight cities, according to Knight Frank India. The segment recorded 19.5 million sq ft of transactions during the quarter, marking a 3% year-on-year increase from 19 million sq ft in Q1 2025.

Bengaluru remained the leading market for large office leases, registering 7 million sq ft of transactions in the 100,000 sq ft-plus category. Large deals formed 77% of the city’s overall office leasing volume of 9.2 million sq ft. Hyderabad ranked second with 4.4 million sq ft of large transactions, posting a sharp 69% YoY growth compared to 2.6 million sq ft in Q1 2025. Mumbai followed with 2.9 million sq ft, recording an 81% rise over the same period last year.

Viral Desai, International Partner and Senior Executive Director, Occupier Strategy & Solutions (Industrial & Logistics, Capital Markets and Retail Agency), Knight Frank India, said, “India’s office market continues to witness strong demand from large occupiers, particularly from Global Capability Centres (GCCs), technology firms and multinational corporations expanding their operations in the country. While Bengaluru remains the dominant market for large office transactions, cities such as Hyderabad and Mumbai are witnessing accelerated growth driven by expanding corporate occupier activity and demand for high-quality office infrastructure. The sustained momentum in large office leasing reflects occupier confidence in India’s long-term growth story and its position as a global business hub.”

Leasing in the mid-sized segment of 50,000 sq ft to 100,000 sq ft stood at 5.2 million sq ft in Q1 2026, rising 27% YoY from 4.1 million sq ft in Q1 2025. This segment contributed 17% to total office transactions, with Bengaluru leading at 1.5 million sq ft, followed by Hyderabad and Mumbai at 1 million sq ft each.

Small office leases below 50,000 sq ft also totalled 5.2 million sq ft during the quarter, showing a 4% YoY growth from 5 million sq ft. Mumbai led this category with 1.6 million sq ft of transactions, while NCR recorded 0.9 million sq ft. Bengaluru and Pune followed with 0.7 million sq ft each.