India's Office Leasing Activity Surges 15% in Q1 2026
Synopsis
India's office leasing market kicks off 2026 with impressive growth. The latest report reveals a 15% rise in leasing activity, reaching 18.3 million square feet. Major cities like Bengaluru and Hyderabad lead the charge, highlighting India's appeal in the Asia-Pacific region.
Key Takeaways
India's office leasing reached 18.3 million square feet in Q1 2026.
Leasing activity increased by 15% year-on-year.
Major cities like Bengaluru and Hyderabad led the growth.
New office space additions totaled 11.8 million square feet .
Flexible workspace leasing rose by 77% compared to last year.
New Delhi, March 26 (NationPress) The office real estate sector in India has kicked off 2026 on a robust trajectory, with leasing activities reaching 18.3 million square feet during the January–March period, according to a report released on Thursday.
This represents a 15% increase from the same timeframe last year, as stated by Colliers India.
The surge was primarily fueled by major metropolitan areas such as Bengaluru and Hyderabad, which together contributed to nearly half of the overall leasing at 8.7 million square feet.
Other significant markets, including Mumbai, Pune, Delhi NCR, and Chennai, also demonstrated strong demand, each recording leasing figures between 2 and 3 million square feet.
Noteworthy is the fact that Hyderabad and Pune experienced more than double the demand in comparison to a year earlier.
The report underscores India’s continued appeal as a preferred location for office space within the Asia-Pacific region, bolstered by the expansion of Global Capability Centers (GCCs) and strong demand from various sectors.
GCCs alone accounted for nearly half of the total leasing in the quarter, reflecting the sustained confidence of global companies in India’s office real estate market.
On the supply front, the addition of new office spaces was strong, totaling 11.8 million square feet in the first quarter, which is a 19% year-on-year increase.
Bengaluru led the new supply, contributing approximately 47% of total new completions, followed by Delhi NCR with a 17% share.
Chennai and Mumbai also saw significant increases, each adding around 1.5 million square feet.
Conventional office leasing continued to lead the charge, making up 14.4 million square feet of total demand.
Technology and BFSI (banking, financial services, and insurance) sectors were the primary contributors, combining for nearly two-thirds of this segment.
Technology firms alone accounted for 36% of conventional leasing, with Bengaluru and Hyderabad emerging as the preferred locations.
Meanwhile, flexible workspace providers are gaining momentum, with leasing by these operators surging by 77% year-on-year to almost 4 million square feet, representing 21% of the total leasing.
Delhi NCR and Hyderabad led in this category, while cities like Kolkata and Delhi NCR experienced particularly strong growth, with flexible operators making up around 40% of total leasing.
Point of View
The office market in India is displaying a strong recovery and growth trajectory as we enter 2026. The significant increase in leasing activity demonstrates the resilience of the market, driven largely by major urban centers. This trend reflects a growing confidence among global firms in India's real estate potential.
NationPress
20 Jun 2026
Frequently Asked Questions
What is the size of office leasing in India for Q1 2026?
In the first quarter of 2026, office leasing in India reached 18.3 million square feet.
Which cities contributed the most to office leasing?
Bengaluru and Hyderabad were the top contributors, accounting for nearly half of the total leasing activity.
How much did the office leasing grow compared to last year?
The office leasing activity increased by 15% compared to the same period last year.
What sectors are driving the demand for office space?
The technology and BFSI sectors are the key drivers of office space demand.
What is the trend for flexible workspaces?
Leasing by flexible workspace providers surged by 77% year-on-year, highlighting their growing popularity.
