India Office Leasing Reaches 54.4 Million Sq Ft as Flex Workspace Demand Surges
India | September 28, 2026: India’s office property market recorded 54.4 million sq ft of gross leasing across its seven major markets between January and September 2026, marking a 7% increase year-on-year. Rising demand for flexible workspaces and continued activity from technology, banking and manufacturing companies supported the market, according to a report by Colliers India.
With 18.7 million sq ft leased in the July-September quarter, office demand continued to expand. Colliers estimates that annual leasing could reach 75–80 million sq ft in 2026 if the momentum continues through the final quarter.
Bengaluru Leads India’s Office Leasing Market
Bengaluru remained the country’s largest office leasing market during the first nine months of 2026, recording 15.7 million sq ft and accounting for 29% of total demand.
Hyderabad followed with 9.4 million sq ft, registering a 47% year-on-year increase. Delhi-NCR, Mumbai, Pune and Chennai each recorded leasing between 6 million and 8 million sq ft.
In Q3, Bengaluru led with 5.2 million sq ft, followed by Delhi-NCR at 3.3 million sq ft. Delhi-NCR’s quarterly leasing more than doubled compared with the same period last year.
Flexible Workspace Demand Grows 37%
Flexible workspace operators leased 12.6 million sq ft during January-September, a 37% increase from the previous year. The segment accounted for approximately 23% of overall office leasing.
Bengaluru and Delhi-NCR were the largest flex workspace markets, recording 2.8 million sq ft each. Delhi-NCR and Hyderabad both reported more than a two-fold increase in flex space uptake during the nine-month period.
In Q3 alone, flex operators leased around 4 million sq ft, up 49% year-on-year.
Technology Companies Remain Major Office Occupiers
Conventional office leasing remained broadly stable at 41.8 million sq ft during the first nine months of 2026.
Technology companies accounted for nearly 16 million sq ft, representing around 38% of conventional office demand. Banking, financial services and insurance (BFSI), along with engineering and manufacturing companies, were the other major occupier groups.
Together, these three sectors contributed nearly three-fourths of conventional office leasing. Bengaluru and Hyderabad accounted for more than 55% of technology companies’ conventional office demand, while Mumbai contributed around 30% of BFSI leasing.
New Office Supply Reaches 41.7 Million Sq Ft
New office supply across the seven major markets increased 1% year-on-year to 41.7 million sq ft during January-September 2026.
More than 19 million sq ft of new office space was completed in Q3, a 79% increase over the previous quarter. Hyderabad contributed 6.7 million sq ft, or approximately 35% of quarterly completions, followed by Bengaluru with a 28% share.
For the first nine months, Bengaluru recorded 14.1 million sq ft of new supply, accounting for about one-third of total completions. Hyderabad and Pune followed.
What the Leasing Numbers Mean for Office Property Owners
The rise in leasing activity indicates continued occupier demand across India’s major office markets. For commercial property owners and developers, the figures provide a measure of demand across different cities and occupier segments.
The strong growth in flexible workspace leasing also highlights the increasing role of operators that offer companies adaptable office arrangements. Colliers’ report suggests flex spaces could account for 20–25% of occupiers’ real estate portfolios over the next few years, compared with an estimated 15–20% currently.
However, leasing growth alone does not establish that rents or property values have increased. Local vacancy levels, building quality, location and the timing of new supply will remain important factors for owners and investors.
Can India’s Office Market Reach 80 Million Sq Ft in 2026?
Colliers Managing Director for Office Services Arpit Mehrotra said India’s major office markets could record 75–80 million sq ft of transactions in 2026 if leasing momentum continues in Q4.
The first nine months have already delivered 54.4 million sq ft of gross leasing. The final quarter will determine whether the market reaches the projected annual range.
For developers planning new office projects and owners assessing leasing prospects, the coming months will provide a clearer indication of whether demand can absorb the supply entering the market.