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India Office Boom: Record Leasing Hits 66.4M Sq. Ft.
1 Oct
Summary
- India's office absorption reached a record 66.4 million sq. ft. in 9 months.
- New supply also hit an all-time high of 51 million sq. ft. during the period.
- Global Capability Centres (GCCs) led leasing, accounting for 42% of absorption.
India's office sector has achieved a record absorption of 66.4 million sq. ft. in the first nine months of 2026, surpassing all previous nine-month periods. This figure represents an 8% increase year-on-year, indicating robust leasing activity. Simultaneously, new supply reached an all-time high for any nine-month period, totaling 51.0 million sq. ft., an 18% rise from the previous year.
Global Capability Centres (GCCs) were significant contributors, leasing 28 million sq. ft. during the January-September 2026 period, which constituted 42% of the total absorption. This surge in GCC leasing, up 16% year-on-year, highlights their sustained confidence in India's long-term economic prospects. Hyderabad and Bengaluru led GCC leasing during the quarter.
Flexible space operators, BFSI, and technology firms were also key demand drivers. Occupiers increasingly prioritized higher-quality, newer buildings, with nearly three-fourths of leased space in buildings under ten years old. This trend signifies a strategic shift towards "core plus flex" models in portfolio decisions.
