India Real Estate Gains Momentum on Office Leasing and Investment
Real Estate

India Real Estate Gains Momentum on Office Leasing and Investment

India’s real estate market is approaching the end of 2026 on a positive footing, supported by resilient residential demand, sustained commercial office leasing and stronger institutional participation. The festive season could provide an additional lift to home sales and project launches, although affordability pressures and higher construction costs continue to weigh on the sector.

Savills India reported that office absorption across the country’s six leading cities reached 60.7 mn sq ft in the first nine months of 2026, up 6 per cent year on year. Global Capability Centres (GCCs), technology companies and financial services firms remained key drivers of demand, with GCCs accounting for 30 per cent of office leasing during the period.

Bengaluru, Hyderabad and Delhi-NCR continued to attract occupiers because of their established business ecosystems and infrastructure development. The activity reinforces India’s position as a major destination for global business and knowledge services, while commercial demand remains supported by companies expanding their operating centres.

Private equity investment in Indian real estate rose 16 per cent year on year to $4.5 bn between January and September, according to Savills India. Residential and office assets remained important destinations, while industrial and logistics facilities, hospitality properties and data centres gained traction.

Manufacturing, e-commerce and supply-chain expansion are supporting demand for warehouses and industrial space. Premium and luxury housing demand remained firm in the Mumbai Metropolitan Region, Bengaluru, Hyderabad and Delhi-NCR, with developers using offers, flexible payment plans and new launches to attract buyers during the festive period.

Buyers are placing greater emphasis on construction quality, connectivity, liveability and long-term value. Interest in plotted developments is also rising in Tier-2 markets such as Sonipat, Bahadurgarh and Rohtak, although residential activity may remain broadly flat.

India’s real estate market is approaching the end of 2026 on a positive footing, supported by resilient residential demand, sustained commercial office leasing and stronger institutional participation. The festive season could provide an additional lift to home sales and project launches, although affordability pressures and higher construction costs continue to weigh on the sector. Savills India reported that office absorption across the country’s six leading cities reached 60.7 mn sq ft in the first nine months of 2026, up 6 per cent year on year. Global Capability Centres (GCCs), technology companies and financial services firms remained key drivers of demand, with GCCs accounting for 30 per cent of office leasing during the period. Bengaluru, Hyderabad and Delhi-NCR continued to attract occupiers because of their established business ecosystems and infrastructure development. The activity reinforces India’s position as a major destination for global business and knowledge services, while commercial demand remains supported by companies expanding their operating centres. Private equity investment in Indian real estate rose 16 per cent year on year to $4.5 bn between January and September, according to Savills India. Residential and office assets remained important destinations, while industrial and logistics facilities, hospitality properties and data centres gained traction. Manufacturing, e-commerce and supply-chain expansion are supporting demand for warehouses and industrial space. Premium and luxury housing demand remained firm in the Mumbai Metropolitan Region, Bengaluru, Hyderabad and Delhi-NCR, with developers using offers, flexible payment plans and new launches to attract buyers during the festive period. Buyers are placing greater emphasis on construction quality, connectivity, liveability and long-term value. Interest in plotted developments is also rising in Tier-2 markets such as Sonipat, Bahadurgarh and Rohtak, although residential activity may remain broadly flat.

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