MUMBAI: India’s office market saw strong momentum in Q3 2026 (July-September), with net absorption across the top eight cities reaching 14.1 million square feet (MSF) up 26 per cent quarter-on-quarter, a report said on Saturday.
The report from Cushman & Wakefield said the growth was supported by healthy occupier demand and a significant increase in new office completions during the quarter.
Net absorption moderated by 18 per cent on a year-on-year basis against a strong Q3 2025 base, which saw the highest quarterly absorption of the year.
Hyderabad with 4.1 million sq ft (MSF) of absorption and Bengaluru with 4 MSF led absorption during the quarter. Hyderabad accounted for 29 per cent of the pan-India total and marked its highest quarterly level since Q4 2021.
Net absorption across the top eight cities stood at 36.7 MSF on a year-to-date (YTD) basis. Gross Leasing Volume (GLV) across the top eight cities stood at nearly 22 MSF in Q3 2026, registering a 3 per cent quarterly increase.
Bengaluru continued to lead leasing activity with 5.2 million sq ft, accounting for 24 per cent of the quarterly volume followed by Hyderabad at 4.2 million sq ft, Mumbai at 3.9 MSF and Delhi NCR at 3.8 MSF.
Year to date (YTD) leasing in 2026 reached 64.6 MSF, marking the highest-ever volume recorded during the first nine months of any year. Leasing during the first nine months has already reached approximately 74 per cent of the full-year 2025 volume.
Fresh leasing continued to account for the bulk of YTD activity at nearly 75 per cent. Meanwhile, the share of pre-commitments increased to nearly 12 per cent, reflecting occupiers’ focus on securing quality office space ahead of project completions.
Global Capability Centres (GCCs) remained a key driver of office demand, leasing 9.1 MSF in Q3 2026 and accounting for 42 per cent of total quarterly GLV. Bengaluru and Pune saw particularly strong GCC concentration, with the segment contributing approximately 65 per cent of leasing activity in each market.
From a sectoral perspective, BFSI emerged as the largest demand driver in Q3 2026, accounting for 24 per cent of total leasing activity, followed by IT-BPM at 22 per cent.
“GCCs have been pivotal to this momentum, as global enterprises continue to expand both their presence and capabilities in India. This demand is underpinned by a deep talent pool, cost competitiveness and India’s growing importance within global business strategies,” said Anshul Jain, Chief Executive – India, SEA, MEA & APAC Office and Retail, Cushman & Wakefield.
"As occupiers continue to take a longer-term view of their portfolios, we remain confident in the sustained growth trajectory of India’s office market," he said.