News: India Office Leasing Hits 54.4 Million Sq Ft: Colliers-28-09-2026

Office leasing across India’s top seven markets rose 7% year-on-year to 54.4 million sq ft in the first three quarters of 2026, helped by occupier expansion across sectors and strong uptake by Global Capability Centres (GCCs) and flex space operators, according to a Colliers India report released on September 28.

Bengaluru led with 15.7 million sq ft in January-September, a 29% share. Hyderabad followed with 9.4 million sq ft, up 47% YoY. Delhi-NCR, Mumbai, Pune and Chennai each saw 6-8 million sq ft. Kolkata is the seventh market tracked.

Conventional space uptake was steady at 41.8 million sq ft, broadly in line with the same period of 2025. Technology occupiers leased nearly 16 million sq ft, followed by banking, financial services and insurance (BFSI) and engineering and manufacturing firms. The report said technology companies have taken around 35-40 msf of conventional space since 2025, a sectoral share of around 35-40%, even as workforce realignments shape portfolios. Bengaluru and Hyderabad together accounted for over 55% of conventional demand from technology firms, while Mumbai dominated BFSI leasing with a 30% share.

Flex space operators took up 12.6 million sq ft, a 37% YoY rise and 23% of overall demand. Bengaluru and Delhi-NCR led by volume at 2.8 million sq ft each, and five of the seven markets saw annual growth in flex leasing. Vimal Nadar, National Director and Head of Research, Colliers India, said flex spaces could form 20-25% of occupiers’ portfolios over the next few years, up from 15-20% now.

New supply reached 41.7 million sq ft in the nine months, a marginal 1% annual rise. In Q3 alone, supply surged to over 19 million sq ft, up 79% sequentially and among the strongest quarterly additions in recent years. Hyderabad contributed 6.7 million sq ft, or 35% of the quarter’s additions, followed by Bengaluru at 28%. Over the nine months, Bengaluru saw 14.1 million sq ft of new supply, about one-third of completions, followed by Hyderabad and Pune.

Arpit Mehrotra, Managing Director, Office Services, Colliers India, said demand had been consistent despite a minor blip in Q2 from external volatilities. Third-quarter leasing of 18.7 million sq ft was a record for Q3 in recent years, he said, and 2026 could potentially close with 75-80 million sq ft of transactions across the major markets.