India Office Demand Projected at 70-75 mn Sq Ft in 2026
Real Estate

India Office Demand Projected at 70-75 mn Sq Ft in 2026

Colliers forecasts that Grade A office demand in India will reach 70-75 million (mn) square feet in 2026, with new supply likely to be in the range of 60-65 million (mn) square feet. The firm attributed this momentum to a diversified occupier base, evolving workplace strategies and increasing institutionalisation of commercial real estate. Technology led transformation and sustainability initiatives were identified as further enablers of leasing activity.

The report highlighted the expansion of global capability centres (GCCs), rising adoption of flexible workspaces and a gradual shift towards real estate investment trusts (REITs) as key drivers. Colliers noted that the market had entered a future-ready cycle after record demand in the preceding two years. The consultancy suggested that these trends will support structural growth and deepen institutional participation.

Bengaluru was projected to account for nearly one third of overall leasing activity and supply additions, while Hyderabad and Delhi NCR were each likely to record more than 10 mn sq ft of both demand and new supply. This distribution was presented as reflecting sustained occupier interest across major talent corridors and industry sectors. City level supply pipelines were described as supportive of near term absorption.

GCCs were projected to contribute 30-35 mn sq ft of leasing in 2026, representing 40-50 per cent of overall Grade A demand. Flexible workspace operators were expected to record annual leasing of 15-18 mn sq ft, accounting for 20-25 per cent of total demand owing to scalability and hybrid work models. The report also pointed to growing investor appetite for listed office assets.

Colliers estimated that about 384 mn sq ft of existing Grade A stock could be suitable for listing, which the firm said could broaden retail participation in commercial real estate. Around 80 per cent of leasing activity in 2026 was expected to be concentrated in green certified buildings as sustainability considerations deepen. By 2030 India's Grade A office stock was forecast to surpass one billion (bn) square feet, with annual demand reaching 90-100 mn sq ft and supply touching 75-85 mn sq ft.

Colliers forecasts that Grade A office demand in India will reach 70-75 million (mn) square feet in 2026, with new supply likely to be in the range of 60-65 million (mn) square feet. The firm attributed this momentum to a diversified occupier base, evolving workplace strategies and increasing institutionalisation of commercial real estate. Technology led transformation and sustainability initiatives were identified as further enablers of leasing activity. The report highlighted the expansion of global capability centres (GCCs), rising adoption of flexible workspaces and a gradual shift towards real estate investment trusts (REITs) as key drivers. Colliers noted that the market had entered a future-ready cycle after record demand in the preceding two years. The consultancy suggested that these trends will support structural growth and deepen institutional participation. Bengaluru was projected to account for nearly one third of overall leasing activity and supply additions, while Hyderabad and Delhi NCR were each likely to record more than 10 mn sq ft of both demand and new supply. This distribution was presented as reflecting sustained occupier interest across major talent corridors and industry sectors. City level supply pipelines were described as supportive of near term absorption. GCCs were projected to contribute 30-35 mn sq ft of leasing in 2026, representing 40-50 per cent of overall Grade A demand. Flexible workspace operators were expected to record annual leasing of 15-18 mn sq ft, accounting for 20-25 per cent of total demand owing to scalability and hybrid work models. The report also pointed to growing investor appetite for listed office assets. Colliers estimated that about 384 mn sq ft of existing Grade A stock could be suitable for listing, which the firm said could broaden retail participation in commercial real estate. Around 80 per cent of leasing activity in 2026 was expected to be concentrated in green certified buildings as sustainability considerations deepen. By 2030 India's Grade A office stock was forecast to surpass one billion (bn) square feet, with annual demand reaching 90-100 mn sq ft and supply touching 75-85 mn sq ft.

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