India’s office leasing touches record 66.4 million sq ft in January-September: CBRE
Hyderabad, Oct 2 (TNT): India’s office market recorded a record absorption of 66.4 million sq ft during January-September 2026, registering an 8 per cent year-on-year growth, driven by sustained demand from Global Capability Centres (GCCs), flexible workspace operators, BFSI and technology firms, according to CBRE South Asia.
The third quarter (July-September) recorded office space absorption of around 21 million sq ft, up 6 per cent year-on-year, while new supply during the first nine months of 2026 reached an all-time high of 51 million sq ft, marking an 18 per cent increase over the corresponding period last year.
Completions during the third quarter stood at 19 million sq ft, up 26 per cent year-on-year, with Hyderabad, Bengaluru and Pune accounting for nearly 89 per cent of the additions, according to CBRE’s India Office Figures report.
Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE, said the office market was on course for a fourth consecutive year of record leasing, with nine-month activity already accounting for nearly 80 per cent of the total recorded in 2025.
GCCs leased around 8.7 million sq ft during the third quarter, taking their total absorption in the first nine months to a record 28 million sq ft. They accounted for 42 per cent of overall leasing during the period, registering a 16 per cent year-on-year increase.
Hyderabad led GCC leasing during the third quarter with a 37 per cent share, followed by Bengaluru at 28 per cent. Chennai and Delhi-NCR accounted for 11 per cent each, while Pune and Mumbai recorded shares of 7 per cent and 5 per cent, respectively.
GCCs accounted for 59 per cent of large-format transactions involving office spaces exceeding 100,000 sq ft during the quarter, while Fortune 500 companies contributed 40 per cent of GCC leasing.
Flexible workspace operators led sectoral demand with a 24 per cent share of quarterly leasing, followed by banking, financial services and insurance (BFSI) at 22 per cent and technology firms at 15 per cent. GCCs accounted for 76 per cent of leasing within the BFSI segment.
Ram Chandnani, Managing Director, Leasing Services, CBRE India, said occupiers were increasingly prioritising high-quality office buildings and the flexibility to expand their operations. Nearly three-fourths of the space leased during the quarter was in buildings less than 10 years old, he said.
Hyderabad, Bengaluru and Delhi-NCR together accounted for approximately 69 per cent of quarterly leasing and 64 per cent of leasing activity during the first nine months of 2026.
The report also highlighted the growing preference for premium and sustainable office spaces. More than half of the new supply added during the third quarter and the nine-month period came from premium Grade A+ assets. Green-certified buildings accounted for around 80 per cent of quarterly completions and 82 per cent of quarterly leasing.
Integrated technology parks accounted for nearly 89 per cent of the new supply during the third quarter.
Looking ahead, CBRE said India’s office market was positioned for another strong year, supported by healthy occupier enquiries and expansion plans of domestic and global companies.
According to CBRE Research’s 2026 India Office Occupier Survey, nearly 77 per cent of occupiers expect to expand their office portfolios in India over the next two years. Emerging GCCs, including mid-sized, nano and micro firms, are also expected to contribute to future demand.
The report added that around 68 per cent of surveyed GCCs identified access to specialised talent as a key consideration when selecting office locations, amid the growing adoption of artificial intelligence.
TNT TS
