India’s office leasing market reached a record high of 61.06 million square feet (msf) during January-September 2026, driven by strong demand from Global Capability Centres (GCCs), technology companies and flexible workspace operators, according to a report by JLL. Leasing activity in major cities is continuing to be strong, and to date, the market is poised to replicate its full-year activity in 2025, with annual office leasing activity likely to exceed 100 msf in the next two to three years.

Key Highlights

• India’s office leasing reached a record 61.06 million square feet during January-September 2026, according to JLL.

• GCCs leased 26.2 million square feet, while net absorption reached 42 million square feet across India’s top seven cities.

India Office Leasing Reaches 23.17 Million Sq Ft in Q3 2026

Gross office leasing also increased, to 23.17 msf for the July-September quarter, with transactions that were deferred from the previous quarter. The 33.4% share in the quarter was contributed by Bengaluru, followed by Hyderabad (19.6%), Delhi-NCR (18.1%) and Mumbai (12.4%).

Bengaluru continued to be the top market for office leasing for the first 9 months of 2026 with a 28% share of the market. The next cities were Delhi-NCR, Hyderabad, Mumbai and Pune.

The third quarter marked a revival in confidence on the office market, with businesses resuming their plans to grow and sign new space after a lag in the previous quarter, said Radha Dhir, JLL's CEO for India.

GCC Leasing Reaches 26.2 Million Sq Ft in Nine Months

Global Capability Centres remained a major source of office demand, leasing 26.2 msf between January and September 2026. This represented 84% of the total space leased by GCCs throughout 2025, which was itself a record year.

GCC leasing increased 30.6% year-on-year and accounted for 42.9% of total office demand during the nine-month period. Foreign occupiers contributed 62% of overall office leasing, marking their highest share in seven quarters, according to JLL.

Dhir said companies continued to invest in India despite global uncertainties, supported by the country’s talent pool and growth opportunities. She added that ongoing negotiations and plans by additional GCCs to establish operations could further support leasing activity through the end of 2026.

Also Read: GCCs Drive India's Office Leasing to 45% Share in H1 2026

Technology and BFSI Drive Corporate Office Demand

Technology companies accounted for 25.6% of office leasing in the third quarter of 2026, while banking, financial services and insurance (BFSI) contributed 25.3%. The BFSI industry had the highest leasing volume ever in the quarter, indicating strong demand for office space among financial service companies.

Flexible workspace operators ranked second, accounting for 15.5% of the quarterly leasing, followed by manufacturing and industrial companies with 16.1%.

There was strong demand for flexible workspace in the first quarter of this year. A record 13.83 msf was leased by operators in India's top seven cities, representing 52% of the country's total office space being occupied by domestic operators.

Net Office Absorption Hits Record 42 Million Sq Ft

Net absorption (the amount of space added to the occupied total) has hit a new record of 42msf in the first nine months of 2026. This represented a rise of 5.3% compared with the same period the previous year, continuing the trend of growth in occupied commercial real estate.

Overall, however, the average office vacancy across India's top seven cities increased by 30 basis points from the previous quarter to 14.8%. JLL reported that 43.7 msf of new office space were delivered during the third quarter, which was the largest quarterly supply since the pandemic.

Record leasing and the surge in new supply signals the importance of monitoring occupier demand and the rate at which office supply is being added. If demand remains strong, India’s office market could continue expanding, with GCCs, technology firms, BFSI companies and flexible workspace providers supporting activity.