Fresh office space supply in key cities set to surge

New Delhi: Indian might see the highest supply of office space in 2026 and 2027 as developers once hesitant in building offices post Covid, pushed the momentum in 2022 and most of these buildings will be completed this year.

According to multiple global property consultants, India’s top cities will see up to 90 million sq ft of office supply, which is almost double the annual average of last few years and the highest in a decade.

“However, office supply in the prime micro-markets in major cities is still not matching the demand. In the last three years, over 225 million sq ft has been absorbed and supply needs to match the demand,” said Anshuman Magazine, chairman and CEO - India, Southeast Asia, Middle East and Africa, CBRE.


According to CBRE, office leasing activity hit a record high in 2025 for the third consecutive year, reaching 82.6 million square feet.

Similar absorption is expected in 2026 as well.

“The 2026 supply pipeline is largely concentrated in Bengaluru, Delhi-NCR and Hyderabad, which together are expected to see over 60% of new office completions, subject to execution timelines. This large addition of Grade-A office space, driven by steady demand from GCCs and continued focus on established business districts, is likely to keep vacancy levels slightly elevated in the near term and enhance occupiers’ choices,” said Naveen Nandwani, MD, commercial advisory and transactions, Savills India.

Consequently, rental growth is expected to remain mostly range-bound, with only high-quality assets in prime micro markets witnessing a limited upside.

“After a prolonged phase where new office supply lagged demand due to pandemic-led construction disruptions, the market is entering a phase of supply revival. With demand remaining robust, vacancies tightening and rentals firming across key markets, the need for fresh, high-quality completions has become increasingly evident,” said Veera Babu, executive managing director, tenant representation, Cushman & Wakefield.

The upcoming pipeline is distinctly quality-led, with a large share of supply concentrated in prime locations and Grade A+ developments making up for a healthy share, reflecting occupiers’ preference for efficient, future-ready workplaces.

“With pre-commitments gaining momentum, this supply cycle should help restore market balance and reinforce occupier confidence,” Babu said.

Despite record supply, strong demand led to significant vacancy compression, with overall vacancy declining by 210 basis points (bps) YoY, the steepest annual drop on record. All major cities reported a reduction in vacancy levels, except Pune and Ahmedabad.

Developers are increasingly delivering fully amenitised, premium, green-certified office spaces that align with occupiers’ priorities regarding operational scalability, employee experience, and long-term business goals.

Moreover, sustainability has become a defining feature of premium office developments, with occupiers increasingly treating LEED and IGBC certifications as the minimum standard for meeting their ESG commitments.

Developers are now advancing beyond certifications by integrating energy-efficient design, renewable energy systems, and sustainable construction practices that align with occupiers’ ESG priorities, BRSR requirements, and long-term operating efficiency goals.

In 2026, a significant proportion of new supply is expected to be green-certified, underscoring the sector’s decisive shift towards environmentally responsible development.