Large office deals drive 65% of India's Q1 2026 leasing: Knight Frank
Synopsis
Large office deals of 1 lakh sq ft and above now command 65% of India's commercial leasing market, with Bengaluru, Hyderabad, and Mumbai driving outsized growth in Q1 2026. The Knight Frank India report signals that GCCs and multinationals are not just returning — they are scaling up faster than at any point in recent quarters.
Key Takeaways
Large office deals ( 1 lakh sq ft+ ) accounted for 65% of India's total office leasing in Q1 2026 across 8 cities .
Large-space leasing grew 3% year-on-year to 19.5 million sq ft , up from 19 million sq ft in Q1 2025.
Bengaluru led with 7 million sq ft of large-space leasing, or 77% of its total office transactions.
Hyderabad surged 69% to 4.4 million sq ft ; Mumbai rose 81% to 2.9 million sq ft .
Mid-segment leasing ( 50,000–1 lakh sq ft ) rose 27% to 5.2 million sq ft ; smaller spaces grew 4% to 5.2 million sq ft .
Transactions for large office spaces of 1 lakh square feet and above accounted for 65 per cent of India's total commercial office leasing activity across eight leading cities in Q1 2026, according to a report released by Knight Frank India on 8 May 2025. Large-deal leasing grew 3 per cent year-on-year to 19.5 million sq ft, up from 19 million sq ft in Q1 2025, underscoring sustained occupier appetite for scale.
Bengaluru Leads, Hyderabad and Mumbai Surge
Bengaluru retained its top position in large-space office transactions, recording 7 million sq ft of leasing in Q1 2026 — representing 77 per cent of the city's total office transactions of 9.2 million sq ft. The city's dominance reflects its deep talent pool and entrenched position as India's technology and Global Capability Centre (GCC) capital.
Hyderabad ranked second in the large office category with 4.4 million sq ft, a sharp 69 per cent jump from 2.6 million sq ft a year earlier. Mumbai followed with 2.9 million sq ft, marking an 81 per cent increase — the steepest growth rate among the top three cities. Both markets are benefiting from expanding corporate occupier activity and rising demand for high-quality office infrastructure, according to the report.
What the Industry Is Saying
Point of View
Suggesting long-term commitment rather than opportunistic expansion. Hyderabad's 69% surge and Mumbai's 81% jump deserve particular attention: both cities are historically secondary to Bengaluru, and their acceleration hints at a geographic diversification of India's office demand that could reshape tier-one real estate pricing over the next two years. The mid-segment's 27% growth is equally telling — it suggests the pipeline of occupiers scaling toward large-format is deepening, not thinning.
NationPress
28 Jun 2026
Frequently Asked Questions
What share of India's office leasing market do large deals account for in Q1 2026?
Large office space deals of 1 lakh sq ft and above accounted for 65 per cent of total leasing activity across eight leading Indian cities in Q1 2026, according to Knight Frank India. This segment grew 3 per cent year-on-year to 19.5 million sq ft.
Which city led large office space leasing in India in Q1 2026?
Bengaluru led all cities with 7 million sq ft of large-space leasing in Q1 2026, representing 77 per cent of the city's total office transactions of 9.2 million sq ft. It retained its top position driven by GCC and technology sector demand.
How much did Hyderabad and Mumbai grow in office leasing?
Hyderabad recorded 4.4 million sq ft in large office leasing, up 69 per cent from 2.6 million sq ft in Q1 2025. Mumbai grew even faster at 81 per cent, reaching 2.9 million sq ft, the steepest growth rate among the top three cities.
What is driving demand for large office spaces in India?
According to Knight Frank India, demand is being driven primarily by Global Capability Centres (GCCs), technology firms, and multinational corporations expanding their India operations. Occupiers are seeking high-quality office infrastructure at scale, reflecting confidence in India's long-term growth story.
How did mid-segment and smaller office leasing perform in Q1 2026?
Mid-segment leasing for spaces between 50,000 sq ft and 1 lakh sq ft rose 27 per cent to 5.2 million sq ft, contributing 17 per cent of overall transactions. Smaller office spaces below 50,000 sq ft grew 4 per cent to 5.2 million sq ft, with Mumbai leading that segment.
