India office market set for next growth cycle, led by GCCs, flex spaces and REITs

Bengaluru: India’s office market is entering a more structural, future-ready growth phase in 2026, with Grade A leasing expected at 70–75 million sq ft and new supply at 60–65 million sq ft, according to Colliers. The momentum will be driven by a deeper occupier base, evolving workplace strategies and increasing institutional participation in commercial real estate.

After two record years in 2024 and 2025, the sector is now transitioning into a more resilient cycle, underpinned by five key trends: accelerated expansion of Global Capability Centers (GCCs), rising adoption of flexible workspaces, growing REIT-led ownership, tech-enabled offices and sustainability-led development.

“India’s office market has undergone a steady transition, while picking up pace in recent years. Post the expansionary phase of 2024 & 2025, demarcated by consecutive years of record-breaking demand, the office market is set for a future-ready cycle of structural growth & institutionalization. The ongoing scale-up is likely to be driven by expanding footprint of GCCs, strengthening flex space offerings, expanding talent corridors and broadening occupier base. These enabling factors are likely to fuel Grade A leasing activity to the tune of 70–75 million sq ft in 2026, building a potential roadmap towards 100 million sq ft of annual demand in the coming years,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.


GCCs will remain the primary growth engine, with leasing expected to touch 30–35 million sq ft in 2026, accounting for up to half of total demand. Their evolution into innovation-led, domain-specialized hubs across sectors such as technology, BFSI and manufacturing is reshaping occupier requirements.

Companies are increasingly opting for distributed models—combining headquarters, satellite offices and flex spaces—prompting developers to focus on modular, scalable and plug-and-play office formats.

Flexible workspace operators are set to lease 15–18 million sq ft in 2026, contributing 20–25% of total absorption. Once a tactical solution, flex has become central to occupier strategies, offering scalability, cost efficiency and hybrid work enablement.

Flex platforms are also playing a critical role in supporting GCC entry and expansion in India, providing end-to-end solutions spanning location strategy, compliance and talent integration.

Institutional ownership is set to expand further, with over 380 million sq ft of Grade A office stock holding potential for future REIT listings. Currently, about 141 million sq ft is already listed, leaving significant headroom for growth.

REIT penetration is expected to cross 20% in the coming years, transforming how office assets are owned, monetized and accessed by investors, while improving transparency and governance.

Sustainability is emerging as a core differentiator. Over 80% of new office supply in 2026 is expected to be green-certified, pushing overall penetration to 70–75%. Leasing in such assets could account for nearly 80% of total demand.

“Climate-ready assets are likely to dominate institutional portfolios and REIT pipelines in the long-term, with ESG commitments accelerating the adoption of global best practices. As ESG performance evolves from a compliance metric to a true value driver, influencing asset valuations and investor preference, data-driven benchmarking will become central to asset competitiveness,” said Vimal Nadar, National Director & Head, Research, Colliers India.

Bengaluru will continue to dominate, accounting for nearly one-third of leasing and supply. Hyderabad and Delhi-NCR are also expected to record over 10 million sq ft each in both demand and completions, reinforcing their position as key office hubs.

With strong demand fundamentals, declining vacancies and firming rentals, India’s office stock is projected to cross 1 billion sq ft by 2030. Supported by cost and talent advantages over other APAC markets, the sector is well-positioned to sustain its growth trajectory despite global uncertainties.