India Records 60.7 Million Sq. Ft. of Office Space Absorption in First Nine Months of 2026: Savills India
New Delhi, October 15, 2026: India’s office space market recorded a gross absorption of 60.7 million square feet across the top six major cities during the first nine months of 2026, marking a 6 percent year-on-year growth, according to a press release issued by real estate advisory firm Savills India.
During the same period, new office space supply reached 43.7 million square feet, reflecting a 23 percent increase year-on-year. Driven by sustained leasing momentum and controlled supply additions, the overall vacancy rate across the major markets fell to 13 percent by the end of the third quarter. In the third quarter of 2026 alone, gross absorption reached 19.5 million square feet, up 6 percent year-on-year.
Bengaluru led overall leasing activity, recording 18.0 million square feet of gross absorption in the first nine months of the year, followed by Hyderabad with 10.1 million square feet and Delhi-NCR with 9.6 million square feet. In the third quarter, Bengaluru again topped the market with 5.3 million square feet of absorption, followed by Hyderabad with 4.2 million square feet and Delhi-NCR with 3.4 million square feet. Mumbai registered 8.7 million square feet in the first nine months, remaining the tightest market with a vacancy rate of 5.5 percent, while Pune recorded its highest-ever nine-month absorption at 8.5 million square feet. Chennai recorded 5.8 million square feet during the same nine-month period.
Sector-wise, the IT-BPM industry dominated third-quarter leasing activity with a 33 percent share, followed by flexible workspaces at 21 percent and BFSI at 10 percent. Global Capability Centres contributed 30 percent to total leasing in the third quarter, absorbing around 5.9 million square feet of space. Large transactions of 100,000 square feet or more accounted for 46 percent of total transactions in the quarter.
Commenting on the market performance, Naveen Nandwani, MD, Commercial Advisory and Transactions at Savills India, said, “India’s office market has maintained healthy momentum through the first nine months of 2026, with gross absorption reaching 60.7 mn sq. ft. in YTD. Sustained occupier demand, led by GCCs and corporate expansions across IT-BPM, Flexible Workspaces, and BFSI sectors continued to reinforce India’s position as a preferred office market. Backed by strong business fundamentals and long-term confidence, we expect leasing activity to remain robust through the final quarter, with annual absorption likely to be around 74 million sq. ft.”
