India office leasing hits 54.4 million sq ft in Jan-Sept 2026
India's office leasing surged 7% to 54.4 million sq ft in the first nine months of 2026, with Bengaluru leading the charge.
India's commercial real estate sector is witnessing a massive surge, with office leasing across the top seven markets climbing to 54.4 million sq ft during the first nine months of 2026. This represents a 7 per cent increase compared to the same period last year, according to a recent report by Colliers.
The momentum was particularly evident in the third quarter, where Grade A office demand reached 18.7 million sq ft. This figure marks the highest level recorded for a third quarter in recent years, reflecting a 7 per cent sequential rise from the second quarter of 2026.
Bengaluru maintains dominance in office demand
When looking at city-specific performance, Bengaluru has solidified its position as the primary driver of the country's office space uptake. The city recorded 15.7 million sq ft of leasing, accounting for a significant 29 per cent share of the total market during the nine-month period.
Out of the seven major markets analyzed, five recorded year-on-year growth in gross leasing. This expansion is being fueled by several key factors:
- Expansion of existing occupiers across various sectors.
- Strong demand from Global Capability Centers (GCCs).
- Rapid growth in the flex space segment.
The rise of flex space and conventional demand
One of the most striking trends in the report is the explosive growth of the flex space segment. Leasing within this category jumped by 37 per cent year-on-year, reaching 12.6 million sq ft between January and September 2026.
Bengaluru and Delhi NCR emerged as the leaders in the flex market, each recording 2.8 million sq ft of leasing. Notably, the uptake in both Delhi NCR and Hyderabad more than doubled compared to the previous year. Meanwhile, conventional office space uptake remained stable, holding steady at 41.8 million sq ft, which is on par with the levels seen during the first three quarters of 2025.
Sector-wise breakdown: Tech and BFSI lead the way
The demand for conventional office space is being heavily dictated by specific industries. The technology sector remains the powerhouse, driving nearly 16 million sq ft of leasing. Following closely are the BFSI (Banking, Financial Services, and Insurance) and the Engineering & Manufacturing sectors. Together, these three sectors account for nearly three-fourths of all conventional space uptake in the first nine months of 2026.
Key regional trends by sector include:
- Technology: Bengaluru and Hyderabad remain the top choices for tech firms, collectively capturing more than 55 per cent of the sector's conventional office demand.
- BFSI: Mumbai continues to be the hub for financial services, accounting for 30 per cent of the sector's conventional space leasing during this period.