India office market sets nine-month leasing record, with GCCs accounting for 43% of demand

Mumbai: India’s office market is witnessing sustained occupier demand alongside a steady pipeline of new supply, with rising office space take-up and fresh completions shaping vacancy trends across the country’s major business districts.

While new supply has led to a marginal sequential increase in vacancy, levels remain below those recorded a year ago, reflecting continued demand for office space.

Gross leasing across India’s top seven office markets touched 61.06 million sq ft during the first nine months of 2026, the highest for the first nine months of any year, showed a JLL India assessment. Net absorption also touched a record for the corresponding period at 41.96 million sq ft, up 5.3% year-on-year.


“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, CEO, India, JLL.

According to her, annual gross leasing volumes are on track to potentially hit the 100 million sq. ft mark over the next two-three years.

Vacancy across the seven markets stood at 14.8% at the end of the third quarter, up 30 basis points sequentially but down 90 basis points year-on-year. The increase came as 43.7 million sq ft of new office space was completed during the first nine months, the highest supply addition for the corresponding period in the post-Covid phase.

“The office market is increasingly being shaped by occupiers’ focus on workplace quality, operational efficiency and access to talent. Global companies are evaluating office portfolios not just on cost, but also on the ability of workplaces to support collaboration, employee experience and long-term business growth. This is creating a clear distinction between assets that meet evolving occupier expectations and those that do not,” said Shashank Jain, CEO & MD, Brookfield India Real Estate Trust.

According to him, well-located, professionally managed buildings will be better positioned to capture demand.

Mumbai and Delhi-NCR recorded their lowest vacancy levels in 16 and 15 years, respectively. Prime office districts across cities continued to report single-digit vacancy, with occupiers showing a preference for established business locations and premium assets.

Leasing activity strengthened in the July-September quarter, rising 40.9% sequentially to 23.17 million sq ft after a mid-year slowdown. Bengaluru remained the largest office market, accounting for 17.11 million sq ft of gross leasing in the first nine months, up 15.4% year-on-year. Hyderabad recorded a 32% increase to 9.93 million sq ft, while Mumbai’s leasing grew 17.7% to 8.75 million sq ft. Pune reported growth of 31.6% to 8.25 million sq ft.

Global Capability Centres (GCCs) continued to underpin demand, leasing 26.2 million sq ft during January-September, up 30.6% year-on-year and accounting for 42.9% of total leasing. Flex operators also recorded their highest-ever leasing for a comparable nine-month period, taking up 13.83 million sq ft.