India's office market posted strong momentum in Q3 2026 (July–September), with net absorption across the top eight cities reaching 14.1 million square feet (MSF) — a 26% quarter-on-quarter surge, according to a report by property consultancy Cushman & Wakefield released on Saturday, 10 October 2026. The growth was driven by healthy occupier demand and a significant uptick in new office completions during the quarter.

On a year-on-year basis, however, net absorption moderated by 18%, measured against a high Q3 2025 base that had recorded the strongest quarterly absorption of that year.

Cities Leading the Charge

Hyderabad emerged as the top performer with 4.1 MSF of absorption, accounting for 29% of the pan-India total and marking its highest quarterly level since Q4 2021. Bengaluru closely followed with 4 MSF, reinforcing its status as a premier office destination.

On the leasing front, Bengaluru maintained its lead with 5.2 MSF — representing 24% of quarterly gross leasing volume — trailed by Hyderabad at 4.2 MSF, Mumbai at 3.9 MSF, and Delhi NCR at 3.8 MSF.

Record-Breaking Year-to-Date Numbers

Gross Leasing Volume (GLV) across the top eight cities stood at nearly 22 MSF in Q3 2026, registering a 3% quarterly increase. Year-to-date (YTD) leasing in 2026 reached 64.6 MSF, the highest-ever volume recorded during the first nine months of any year. This figure already represents approximately 74% of the full-year 2025 leasing volume.

Fresh leasing accounted for nearly 75% of YTD activity, while pre-commitments rose to about 12% — reflecting occupiers' strategy of locking in quality space ahead of project completions. Net absorption on a YTD basis across the top eight cities stood at 36.7 MSF.

GCCs and BFSI Drive Sectoral Demand

Global Capability Centres (GCCs) remained a dominant force in office demand, leasing 9.1 MSF in Q3 2026 and accounting for 42% of total quarterly GLV. Bengaluru and Pune recorded particularly strong GCC concentration, with the segment contributing approximately 65% of leasing activity in each market.

From a sectoral perspective, BFSI (Banking, Financial Services and Insurance) emerged as the largest demand driver in Q3 2026, accounting for 24% of total leasing activity, followed by IT-BPM at 22%.

Industry Outlook

Anshul Jain, Chief Executive – India, SEA, MEA & APAC Office and Retail at Cushman & Wakefield, said: 'GCCs have been pivotal to this momentum, as global enterprises continue to expand both their presence and capabilities in India. This demand is underpinned by a deep talent pool, cost competitiveness and India's growing importance within global business strategies.'

Jain added: 'As occupiers continue to take a longer-term view of their portfolios, we remain confident in the sustained growth trajectory of India's office market.'

This comes amid a broader global reassessment of real estate portfolios post-pandemic, with India increasingly seen as a strategic hub for multinational expansion. With full-year 2026 volumes on track to set a new benchmark, the sector's structural tailwinds — GCC growth, BFSI expansion, and talent availability — appear intact heading into Q4.