India Office Space Demand Rises 7% to Reach 54.4 Million Square Feet in First Nine Months of 2026: Colliers India
Bengaluru, September 28, 2026: Cumulative office space demand across India’s top seven markets reached 54.4 million sq ft during the first three quarters of 2026, marking a 7% Year-on-Year growth. According to data from Colliers India, the expansion was driven by sustained occupier demand across sectors alongside strong space uptake from Global Capability Centers and flex space operators. In Q3 2026 alone, Grade A leasing reached a record third-quarter high of 18.7 million sq ft, representing a 7% sequential increase over Q2 2026 and a 9% rise compared to Q3 2025.
Bengaluru continued to lead national office demand, recording 15.7 million sq ft of space uptake during the nine-month period to hold a 29% market share. Hyderabad followed with 9.4 million sq ft, reflecting a 47% annual increase. During Q3 2026, Bengaluru recorded 5.2 million sq ft of leasing, while space uptake in Delhi NCR more than doubled year-on-year to 3.3 million sq ft. Meanwhile, new Grade A supply across the top seven cities reached 41.7 million sq ft during Jan-Sep 2026, boosted by a record quarterly supply infusion of over 19 million sq ft in Q3 led by Hyderabad and Bengaluru.
Flex space operators accounted for 12.6 million sq ft of leasing during the first nine months of the year, registering a 37% annual rise. Conventional leasing stood steady at 41.8 million sq ft, with the technology sector driving nearly 16 million sq ft of demand, followed by banking, financial services, and insurance alongside engineering and manufacturing firms.
Speaking on the performance, Arpit Mehrotra, Managing Director, Office Services, Colliers India, said, “Office space demand in the country has remained remarkably consistent in the first three quarters of 2026, even though a minor blip was evident during Q2 on account of external volatilities. Leasing activity in the third quarter has been particularly noteworthy at 18.7 million sq ft, a record high for Q3 in recent years. With cumulative Grade A space uptake already at 54.4 million sq ft, and demand prospects looking strong in the final quarter, we are well poised for a stronger 2026, wherein we could potentially see 75-80 million sq ft of transactions across the major office markets of the country.”
Highlighting sector dynamics, Vimal Nadar, National Director and Head of Research, Colliers India, said, “Q3 2026 reinforces the depth of India’s office market landscape. Conventional leasing remained steady, led by technology firms and well supported by companies from BFSI and engineering & manufacturing domain. At the same time, flex spaces continue to entrench their pivotal role in India’s office market, with leasing by flex operators witnessing a sharp 49% annual rise during the quarter to around 4 million sq ft. Not surprisingly, the volume of cumulative large flex space deals (≥100,000 sq ft) doubled in Q3 compared to last year’s corresponding quarter. This reiterates the ongoing shift in occupier preference towards managed & flexible workspace formats. Flex spaces could potentially form 20-25% of occupiers’ real estate portfolios over the next few years, up from 15-20% currently.”
