India’s Office Sector Net Absorption Rises 26% to 14.1 MSF in Q3 2026: Cushman & Wakefield Study
Gurugram, October 11, 2026: India’s office market recorded net absorption of 14.1 million square feet (MSF) across the top eight cities in Q3 2026, marking a 26 per cent quarter-on-quarter (q-o-q) increase, according to Cushman & Wakefield’s Q3 2026 Office MarketBeat report. The expansion was supported by steady occupier demand and a sharp rise in new completions, though net absorption moderated by 18 per cent on a year-on-year basis against a strong Q3 2025 base.
At the regional level, Hyderabad and Bengaluru led the absorption figures during the quarter. Hyderabad recorded 4.1 MSF of net absorption, representing 29 per cent of the national total and its highest quarterly level since Q4 2021. Bengaluru followed with 4.02 MSF, accounting for 28.6 per cent of overall absorption. Year-to-date (YTD) net absorption across the top eight cities reached 36.7 MSF. Meanwhile, Gross Leasing Volume (GLV) stood at approximately 22 MSF in Q3 2026, registering a 3 per cent q-o-q growth, with YTD leasing reaching a record 64.6 MSF.
Global Capability Centres (GCCs) remained a primary growth engine, leasing 9.1 MSF during the quarter to account for 42 per cent of total leasing activity. From a sectoral perspective, Banking, Financial Services, and Insurance (BFSI) emerged as the largest demand driver with a 24 per cent share, followed by IT-BPM at 22 per cent. Furthermore, new office completions reached an all-time quarterly high of 22.7 MSF, with Bengaluru and Hyderabad contributing over 80 per cent of the new supply. Pan-India rents rose 2 per cent q-o-q despite a slight increase in vacancy to 14.37 per cent due to heavy supply additions.
Commenting on the market trajectory, Anshul Jain, Chief Executive – India, SEA, MEA & APAC Office and Retail, Cushman & Wakefield, said, “India’s office market remains structurally strong, and the sustained levels of absorption and leasing we are seeing are a clear reflection of that. With 64.6 MSF of leasing in the first nine months of 2026, the highest ever for this period, the market continues to demonstrate remarkable depth and resilience, despite persistent macroeconomic and geopolitical uncertainty.”
Veera Babu, Executive Managing Director, Tenant Representation- India, Cushman & Wakefield, added, “India’s office market continues to see healthy occupier demand, with net absorption reaching 14.1 MSF during the quarter. While limited supply in the first half of the year had constrained occupier options across several markets, the significant increase in completions during Q3 brought much-needed quality space into the market, creating capacity for the next phase of expansion.”
