India's office market posted its strongest first nine months on record in 2026, with gross leasing of 64.6 million sq ft across the top eight cities, according to Cushman & Wakefield's Q3 2026 Office MarketBeat report released on October 13.

The nine-month total is already about 74% of the volume leased in all of 2025. In the July–September quarter alone, gross leasing was about 22 million sq ft, up 3% from the previous quarter. Net absorption was 14.1 million sq ft, up 26% quarter on quarter but 18% lower than the record third quarter of 2025.

Bengaluru and Hyderabad dominate

Bengaluru led gross leasing with 5.2 million sq ft, about 24% of the national total. Hyderabad absorbed 4.1 million sq ft, its highest quarterly figure since late 2021, and the two cities together accounted for about 57% of national net absorption. Mumbai leased 3.9 million sq ft and Delhi-NCR 3.8 million sq ft.

Who is renting

  • Global capability centres (GCCs) took 9.1 million sq ft in the quarter, 42% of all leasing.
  • Banking and financial services were the largest sector, at 24% of quarterly leasing; their nine-month total of 13.2 million sq ft is up 34%.
  • Flexible workspace operators leased a record 11.9 million sq ft so far this year, up 42%.
  • IT-BPM's share fell to 22% of nine-month leasing from 33% a year ago.

Supply catches up

New completions hit a record 22.7 million sq ft in the quarter, nearly double the previous quarter, with Bengaluru and Hyderabad together accounting for more than 80%. As a result, national vacancy rose 63 basis points to 14.37%, ending twelve straight quarters of decline. Rents still rose 2% quarter on quarter.

Anshul Jain, Cushman & Wakefield's chief executive for India, South-East Asia, the Middle East and Africa and Asia-Pacific office and retail, said the market "remains structurally strong".