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Bengaluru leads office leasing as top seven markets clock 54.4 mn sq ft in Jan-Sep 2026
Conventional office space uptake across markets remained steady at 41.8 mn sq ft in the first three quarters of 2026, with tech firms accounting for 16 mn sq ft
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Office space demand across India’s top seven markets remained firm during the first three quarters of 2026, with cumulative leasing rising 7% year-on-year (YoY) to 54.4 million sq ft. The growth was driven by occupier expansion across sectors, along with strong space uptake by Global Capability Centres (GCCs) and flex space operators, according to a report by Colliers India released on September 28.
Bengaluru led office leasing during January-September 2026, recording 15.7 million sq ft of space uptake and accounting for a 29% share of the total. Hyderabad followed with 9.4 million sq ft, registering a 47% YoY increase during the period, it showed.
Delhi-NCR, Mumbai, Pune and Chennai also recorded healthy leasing activity, with each market witnessing 6-8 million sq ft of space uptake during the first nine months of 2026. The top seven markets comprise Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune, as per the report.
Tech sector drives conventional office leasing with 16 mn sq ft uptake in 2026
During the first three quarters of 2026, conventional space uptake across India’s top seven office markets remained steady at 41.8 million sq ft, broadly in line with the same period in 2025. Technology sector occupiers drove the bulk of conventional space demand, leasing nearly 16 million sq ft, followed by banking, financial services and insurance (BFSI) and engineering and manufacturing firms, the report noted.
It noted that companies in the technology sector have taken up around 35-40 msf of conventional office space since 2025, corresponding to a sectoral share of around 35-40%, even as workforce realignments increasingly shape occupiers’ real estate portfolios. More importantly, talent availability and density continue to strengthen the country’s positioning as a global technology hub for AI, advanced analytics, research and product development.
Bengaluru and Hyderabad continue to be preferred by technology firms, cumulatively accounting for over 55% share in conventional office space demand. Mumbai, meanwhile, continued to dominate BFSI leasing, with a 30% share of conventional space uptake during the nine-month period, the report noted.
Flex space operators account for 23% of overall demand; Bengaluru and Delhi-NCR lead
Flex space operators accounted for 23% of overall demand, taking up 12.6 million sq ft during January-September 2026. Bengaluru and Delhi-NCR remained a leading flex market by volume, with each city accounting for 2.8 million sq ft of leasing during the period.
Leasing by flex-space operators reached 12.6 million sq ft, a 37% YoY rise in the first nine months of 2026, the report noted.
Bengaluru and Delhi-NCR remained India’s leading flex markets by volume, with each city accounting for 2.8 million sq ft of leasing during the period. Five of the seven office markets saw an annual uptick in leasing by flex space operators during the nine-month period.
“There is a shift in occupier preference towards managed and flexible workspace formats. Flex spaces could potentially form 20-25% of occupiers’ real estate portfolios over the next few years, up from 15-20% currently,” said Vimal Nadar, National Director and Head of Research, Colliers India.
Hyderabad and Bengaluru lead office completions in Q3
New supply across the top seven office markets reached 41.7 million sq ft during the first three quarters of 2026, representing a marginal 1% rise on an annual basis. However, in anticipation of rising demand, developers infused a record-high supply during Q3 2026.
In fact, during Q3 2026, new supply surged to over 19 million sq ft, rising 79% sequentially and marking one of the strongest quarterly supply additions in recent years. With 6.7 million sq ft, Hyderabad accounted for the majority of quarterly supply additions, at 35%, followed by Bengaluru at 28%, the report showed.
In the nine-month period, Bengaluru saw 14.1 million sq ft of new supply, accounting for about one-third of completions in 2026, followed by Hyderabad and Pune, it showed.
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“Office space demand in the country has remained consistent in the first three quarters of 2026, even though a minor blip was evident during Q2 on account of external volatilities. Leasing activity in the third quarter has been particularly noteworthy at 18.7 million sq ft, a record high for Q3 in recent years. With cumulative Grade A space uptake already at 54.4 million sq ft, and demand prospects looking strong in the final quarter, we are well poised for a stronger 2026, wherein we could potentially see 75-80 million sq ft of transactions across the major office markets of the country,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.
