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1 lakh sq ft office space deals dominate commercial leasing at 19.5 msf; Bengaluru leads demand
Large office deals above 1 lakh sq ft have dominated India’s Q1 2026 office leasing at 19.5 msf, with Bengaluru leading transactions, according to Knight Frank
Large office space transactions have dominated the commercial real estate sector in Q1 2026, accounting for nearly 65% of total office leasing activity across the country’s top eight cities, with leases for spaces measuring 1 lakh sq ft and above touching 19.5 million sq ft, according to a report by Knight Frank India.
Bengaluru emerged as the top market for large office transactions during the quarter, recording 7 million sq ft of leasing activity in spaces above 100,000 sq ft. Large office deals accounted for 77% of the city’s total office leasing volume of 9.2 million sq ft in Q1 2026.
Hyderabad ranked second with 4.4 million sq ft of large office transactions, marking a sharp 69% year-on-year rise from 2.6 million sq ft in Q1 2025. Mumbai followed with 2.9 million sq ft, reflecting an 81% increase over the previous year.
The National Capital Region recorded 4 million sq ft of transactions, while Pune recorded 3.1 million sq ft. Chennai registered 1.5 million sq ft of office leasing activity during the quarter. Meanwhile, Kolkata and Ahmedabad recorded 0.4 million sq ft and 0.3 million sq ft of transactions, respectively.
Also Read: Bengaluru real estate: ₹10 crore can buy a 3,843 sq ft luxury home in 2025, 3.5% smaller YoY
Viral Desai, Senior Executive Director, Occupier Strategy and Solutions Industrial & Logistics, Capital Markets and Retail Agency, Knight Frank India said India’s office market continued to witness strong demand from large occupiers, particularly GCCs, technology firms and multinational companies.
“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,” he said.
Mid-segment leasing contibuted 17% to overall leasing
The report also said that growth in the mid-sized office segment, covering spaces between 50,000 sq ft and 100,000 sq ft. Leasing activity in this category stood at 5.2 million sq ft in Q1 2026, registering a 27% year-on-year increase from 4.1 million sq ft in the same quarter last year. The segment contributed 17% to overall office leasing volumes across the top markets.
Bengaluru led the mid-sized office category as well with 1.5 million sq ft of transactions, followed by Hyderabad and Mumbai with 1 million sq ft each.
Meanwhile, leasing activity in smaller office spaces below 50,000 sq ft reached 5.2 million sq ft during the quarter, recording a 4% annual rise from 5 million sq ft in Q1 2025.
Mumbai led the small office segment with 1.6 million sq ft of transactions, followed by the National Capital Region at 0.9 million sq ft, while Bengaluru and Pune recorded 0.7 million sq ft each.
