Office leasing across India's nine major cities reached a record 66.4 million square feet during January-September 2026, representing an 8 percent year-on-year increase in demand. According to CBRE, this marks the highest absorption for any nine-month period in the country's office sector history. The July-September quarter alone contributed 21 million square feet of leasing, reflecting a 6 percent rise compared to the same period last year. New office supply during the same period increased 18 percent year-on-year to approximately 51 million sq ft, also the highest recorded for a nine-month period.
Global Capability Centres emerged as the primary growth driver, leasing a record 28 million square feet during the first nine months of 2026, up 16 percent year-on-year and accounting for about 42 percent of overall office absorption. The September quarter specifically saw GCCs lease 8.7 million square feet, demonstrating sustained momentum in this sector. Hyderabad accounted for 37 percent of GCC leasing during the quarter, followed by Bengaluru with 28 percent, while Chennai and Delhi-NCR contributed 11 percent each. GCCs also accounted for 59 percent of large-format transactions exceeding 100,000 sq ft during the quarter, with Fortune 500 companies contributing around 40 percent of GCC leasing in Q3. Notably, Fortune 500 companies accounted for 40 percent of the GCC leasing during the quarter, reinforcing occupier confidence in India's long-term growth story.
During the third quarter alone, Hyderabad recorded the highest office absorption at approximately 5.3 million sq ft, followed by Bengaluru at 4.9 million sq ft and Delhi-NCR at 4.4 million sq ft. Mumbai recorded absorption of approximately 2.6 million sq ft, Chennai 1.9 million sq ft and Pune 1.4 million sq ft during the quarter. Hyderabad also led new supply with approximately 10.2 million sq ft during Q3, followed by Bengaluru at 3.9 million sq ft and Pune at 2.7 million sq ft. Development completions during Q3 stood at about 19 million sq ft, up 26 percent year-on-year. Together, these three cities accounted for 89 percent of quarterly completions, with Hyderabad, Bengaluru and Delhi-NCR leading quarterly leasing with a cumulative 69 percent share.
Flexible workspace operators accounted for 24 percent of quarterly leasing, followed by BFSI firms at 22 percent and technology companies at 15 percent. Together, these three segments accounted for around 59 percent of absorption during the first nine months of the year. Within the BFSI segment, GCCs contributed 76 percent of quarterly leasing. According to Anshuman Magazine, Chairman and CEO of CBRE India, South-East Asia, Middle East and Africa, the office market is positioned for a fourth consecutive record year. The leasing activity during January-September 2026 already accounts for nearly 80 percent of last year's full-year total. "After three consecutive record years, the office market remains on course for a fourth, with 9M 2026 leasing already accounting for nearly 80% of last year's full-year total. What stands out is the breadth of demand underpinning this growth. Flex operators, BFSI and technology occupiers are all expanding simultaneously, while occupiers across the board continue to gravitate towards higher-quality buildings," said Anshuman Magazine.
Green-certified office assets accounted for approximately 80 percent, or 15 million sq ft, of new supply during Q3, with such assets also contributing around 82 percent, or 16.4 million sq ft, of quarterly leasing. More than half of the supply added during Q3 and January-September comprised premium Grade A+ office assets. Integrated technology parks accounted for around 89 percent of new supply during the quarter, highlighting the continued preference for specialized office developments. "Occupiers are making two calls at once - they want quality, and the option to scale. That is why nearly three-fourths of the space taken up this quarter was in buildings under ten years old, and flex has become the largest demand driver. The 'core plus flex' model has moved from an experiment to a strategic portfolio decision," said Ram Chandnani, Managing Director, Leasing Services, CBRE India.
