India’s office space absorption rises 6 pc to 60.7 million sq ft in January-September 2026: Savills
New office supply during the period increased 23 per cent year-on-year to 43.7 million sq ft, while the overall vacancy rate declined to 13 per cent by the end of the third quarter, the report said.
Gross absorption in the third quarter stood at 19.5 million sq ft, up 6 per cent year-on-year. Bengaluru led quarterly leasing with 5.3 million sq ft, followed by Hyderabad at 4.2 million sq ft and Delhi-NCR at 3.4 million sq ft.
Hyderabad recorded cumulative gross absorption of 10.1 million sq ft in the first nine months of 2026, ranking second among the six major markets.
The city recorded leasing activity of around 4.2 million sq ft in the third quarter, of which large transactions of 100,000 sq ft or more accounted for 2.3 million sq ft, or 54 per cent.
The information technology and business process management (IT-BPM) sector accounted for 44 per cent of Hyderabad’s quarterly leasing, followed by flexible workspaces at 16 per cent and healthcare and pharmaceuticals at 14 per cent.
Global Capability Centres (GCCs) leased around 1.8 million sq ft, accounting for approximately 43 per cent of the city’s quarterly activity.
Hyderabad recorded new office supply of 11.6 million sq ft during January-September, against gross absorption of 10.1 million sq ft. Its Grade A office stock stood at 153.8 million sq ft.
At the national level, IT-BPM occupiers accounted for 33 per cent of third-quarter leasing, followed by flexible workspaces at 21 per cent and banking, financial services and insurance (BFSI) at 10 per cent.
Large transactions of 100,000 sq ft or more contributed 46 per cent of overall quarterly leasing.
GCCs accounted for around 30 per cent of national leasing activity, occupying approximately 5.9 million sq ft during the quarter.
Hyderabad, Bengaluru and Pune together accounted for around 75 per cent of GCC-led absorption.
Bengaluru recorded gross absorption of 18 million sq ft during January-September, up 25 per cent year-on-year, retaining its position as the country’s largest office leasing market.
Delhi-NCR recorded 9.6 million sq ft, Mumbai 8.7 million sq ft, Pune 8.5 million sq ft and Chennai 5.8 million sq ft.
Savills India expects annual office absorption to reach around 74 million sq ft in 2026, with demand supported by GCCs and corporate expansions across IT-BPM, flexible workspace and BFSI sectors, said Naveen Nandwani, Managing Director, Commercial Advisory and Transactions, Savills India.
The consultancy has projected full-year demand at 74 million sq ft and new supply at 69.5 million sq ft. Overall Grade A office stock is expected to reach 916 million sq ft by the end of 2026, compared with 892.2 million sq ft recorded in the third quarter.
