Mumbai, 26 Oct: India’s office gross leasing activity hits a record 61.06 million sq. ft for the 9-months of January-September 2026. This marks the strongest performance in the first 9- months of any previous years. July to September (Q3, 2026) recorded the strongest quarter following a mid-year lull with leasing activity surging to 23.17 million sq. ft in the quarter, according to JLL.
The strongest January-September performance on record was driven by a sharp rebound in deal closures underlined by GCCs leasing record space in the period to build on the previous year’s historic performance.
“Q3 showed what happens when confidence returns to India's office market. Deals that were on hold in Q2 got signed, and occupiers backed their growth plans with firm commitments. India remains the centre of the global GCC ecosystem, and the numbers show it. In just nine months of 2026, GCCs have leased 26.2 million sq. ft, which is already 84% of what they took in all of 2025, a record year. GCC leasing is up 30.6% year on year and accounts for 42.9% of all office demand, and foreign occupiers now make up 62.0% of leasing, a seven-quarter high. With active negotiations continuing and more GCCs preparing to set up here, 2026 is set to comfortably go past last year's record. Companies aren't waiting for global uncertainty to clear. They are building in India because this is where their talent and growth are,” said Radha Dhir, Chief Executive Officer, India, JLL.
Bengaluru leads with 33.4% share in Q3; flex operators hit record 13.83 million sq. ft in 9-month 2026 as occupier activity disperses across cities
Bengaluru continued to lead the city-level demand momentum in Q3 2026, capturing a strong 33.4% of total gross leasing volume, with Hyderabad claiming 19.6%, pulling ahead of Delhi NCR which followed with 18.1%, and Mumbai at 12.4%.
For the 9-month period, Bengaluru retained its dominant position as the numero uno office market in the country with a share of 28.0% of gross leasing volumes, and was trailed by Delhi NCR, Hyderabad, Mumbai and Pune in the descending order of contribution share. On a 9M comparison basis, Bengaluru, Hyderabad, Mumbai and Pune have all recorded a y-o-y growth and interestingly gross leasing volumes are at record highs, indicating the strong occupier activity that is now well-dispersed.
Flex operators have now secured 13.83 million sq. ft across India’s top seven cities during the first nine months of 2026, marking an all-time high for this occupier segment in any comparable period.
Gross Leasing (million sq. ft)
|
Market |
Q3 2026 |
9M 2026 |
Q-O-Q Growth (%) |
9M Y-O-Y Growth (%) |
|
Bengaluru |
7.74 |
17.11 |
91.1% |
15.4% |
|
Chennai |
1.41 |
5.39 |
-38.3% |
-13.1% |
|
Delhi NCR |
4.19 |
10.78 |
18.0% |
-17.0% |
|
Hyderabad |
4.55 |
9.93 |
157.3% |
32.0% |
|
Kolkata |
0.19 |
0.86 |
-1.4% |
-31.5% |
|
Mumbai |
2.87 |
8.75 |
69.8% |
17.7% |
|
Pune |
2.23 |
8.25 |
-23.7% |
31.6% |
|
Pan India |
23.17 |
61.06 |
40.9% |
8.1% |
Source: Real Estate Intelligence Service (REIS), JLL Research
Leasing by GCCs shows 30.6% y-o-y growth; domestic flex operators capture 52% of leasing by indigenous firms even as tech firms pivot to efficiency
Global Capability Centres’ (GCCs) leasing picked up pace during the first nine months of 2026, rising 30.6% year-over-year with GCCs claiming a 42.9% share of total leasing activity, confirming their position as the primary driver of office demand in India. Technology and BFSI companies drove GCCs’ market expansion activity, with manufacturing firms following closely. Overall, foreign-headquartered organisations maintained their dominant presence, accounting for 57.8% of leasing during this period.
Domestic occupier activity was led by indigenous flex operators, who captured 52.0% of total space leased by domestic firms during the first nine months of 2026, highlighting their growing dominance in India's office market. Domestic tech firms are strategically pivoting toward higher-value services. They are leveraging AI to deliver customized, long-term solutions rather than transactional offerings while also offering GCC-as-a-service for global firms built on their long-term operational capabilities. However, this transformation has coincided with slower leasing activity compared to the same period in 2025, reflecting a shift toward operational efficiency, and measured expansion as these companies prioritize productivity over headcount-driven growth.
Leasing activity by occupier category (million sq. ft)
|
Occupier Category |
9M 2025 |
9M 2026 |
9M Y-O-Y Growth % |
|
GCCs |
20.0 |
26.2 |
30.6% |
|
Foreign – Non GCCs |
12.8 |
9.1 |
-29.0% |
|
Domestic |
23.6 |
25.8 |
9.2% |
Source: Real Estate Intelligence Service (REIS), JLL Research
Net absorption hits record ~42.0 million sq. ft in 9-months of 2026, up 5.3% y-o-y; Bengaluru leads with 31.3% share, Hyderabad follows at 21.4%
Net absorption during the first nine months of 2026 reached ~42.0 million sq. ft, higher by 5.3% y-o-y while setting a record for all previous comparable periods. Notably, Bengaluru and Pune both recorded their highest net absorption levels for any Jan-Sept period in this year. Bengaluru led with a 31.3% share of the nine-month net absorption figures driven by strong take-up in premium grade developments and new completions across the city's primary business districts. Hyderabad was next with 21.4% strongly indicating its rising strength in India’s office ecosystem. Delhi NCR and Pune followed with 14.5% and 13.9% shares, respectively.
Looking at Q3 alone, net absorption as also higher by 14.1% q-o-q and highest for the year. Bengaluru again led the quarterly net absorption figures with a 32.0% share, followed by Hyderabad with 26.0% and Delhi NCR at 17.0%.
Net Absorption (million sq. ft)
|
Market |
Q3 2026 |
9M 2026 |
Q-O-Q Growth (%) |
9M Y-O-Y Growth (%) |
|
Bengaluru |
4.83 |
13.12 |
43.1% |
24.4% |
|
Chennai |
0.78 |
2.94 |
-31.3% |
-25.6% |
|
Delhi NCR |
2.56 |
6.07 |
25.8% |
-38.6% |
|
Hyderabad |
3.93 |
8.97 |
101.2% |
64.7% |
|
Kolkata |
0.17 |
0.72 |
-26.4% |
-6.0% |
|
Mumbai |
1.40 |
4.31 |
10.7% |
-9.1% |
|
Pune |
1.41 |
5.83 |
-56.1% |
29.1% |
|
Pan India |
15.08 |
41.96 |
14.1% |
5.3% |
Source: Real Estate Intelligence Service (REIS), JLL Research
Vacancy marginally up by 30 bps q-o-q to 14.8%, with the highest quarterly supply coming on-stream in nearly 5 years in Q3 2026
Despite net absorption reaching record levels in the first nine months of 2026, pan-India vacancy across the top seven cities increased marginally by 30 bps q-o-q to 14.8%, though it remained 90 bps lower y-o-y. This uptick came amid 43.7 million sq. ft of new completions during the period, the highest supply for same period in the post-COVID period. Prime office districts across cities maintained single-digit vacancies with ‘flight to quality’ trends favouring core markets and premium assets. Mumbai and Delhi NCR both saw vacancy rates decline further, reaching their lowest levels in 16 and 15 years respectively. Despite strong supply additions, Hyderabad's vacancy remained in line with 2025 year-end level indicating the robustness in demand. Vacancy was also lower y-o-y in Chennai, though rising marginally in Bengaluru, primarily from substantial project completions during the quarter in the latter.
India's office leasing on track to match 2025's historic levels; 100 million sq. ft milestone within reach over next 2-3 years
India's office leasing for 2026 is expected to match 2025's historic levels despite mid-year headwinds. The country's structural advantages as a talent and AI application development hub continue to drive headcount growth for global firms, translating directly to real estate expansion. With office occupancies ramping up and portfolios tightening, 2026 positions as a pivotal year before firms embark on growth plans with India-based operations becoming the digital and engineering core of organisations.
GCC demand remains robust, driven by expansion from existing players and new country entrants across banking, financial services, manufacturing, tech R&D, retail, logistics, infrastructure, and aerospace domains. India's deep talent pool in AI, data science, and digital engineering supports new product development, analytics platforms, and global operations automation.
Tightening vacancies within core assets and submarkets indicates strong appetite for business expansion. A healthy pipeline of institutional-backed quality supply, combined with India's position as the core strategic hub for business innovation, supports market momentum. Gross leasing volumes are on track to potentially hit the 100 million sq. ft mark over the next two-three years.
Gross leasing refers to all lease transactions recorded during the period, including confirmed pre-commitments, but does not include term renewals. Deals in the discussion stage are not included. Net absorption is calculated as the new floor space occupies less floor space vacated. Floor space that is pre-committed is not considered to be absorbed until it is physically occupied.
