Office space leasing increases by 6% on-year during July–September

New Delhi: Office space absorption during the July–September quarter (Q3) stood at 21 million sq. ft., increasing 6% against the year-ago period, according to CBRE.

India's office sector recorded absorption of 66.4 million sq. ft. in the January–September (9M 2026) period, marking a record high for any nine-month period. The total absorption during the first nine months of the year rose 8% year-on-year, reflecting a sustained leasing momentum across the quarters.

New supply during the period also reached 51.0 million sq. ft., an all-time high for any nine-month period and 18% higher Y-o-Y. Development completions in Q3 2026 totalled 19 million sq. ft., up 26% Y-o-Y, led by Hyderabad, Bengaluru and Pune. Together, these three cities accounted for 89% of quarterly completions.


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"After three consecutive record years, the office market remains on course for a fourth, with 9M 2026 leasing already accounting for nearly 80% of last year's full-year total. What stands out is the breadth of demand underpinning this growth. Flex operators, BFSI and technology occupiers are all expanding simultaneously, while occupiers across the board continue to gravitate towards higher-quality buildings,” said Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE.

Global Capability Centres leased 8.7 million sq. ft. during the quarter, taking 9M 2026 GCC absorption to a record 28million sq. ft. and 42% of overall leasing. GCC space take-upvolumes rose 16% Y-o-Y over the nine months.

Hyderabad (37%) and Bengaluru (28%) led GCC leasing during the quarter, followed by Chennai (11%), Delhi-NCR (11%), Pune (7%) and Mumbai (5%). Furthermore, GCCs dominated the large-format transactions above 100,000 sq. ft. with a 59% share during the quarter, reinforcing occupier confidence in India’s long-term growth story. Notably, Fortune 500 companies accounted for 40% of the GCC leasing during the quarter.

Flexible space operators (24%), BFSI (22%) and technology firms (15%) were the key drivers of quarterly leasing, together accounting for 59% of 9M 2026 absorption. Within BFSI, GCCs accounted for a 76% share of leasing during the quarter.

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"Occupiers are making two calls at once - they want quality, and the option to scale. That is why nearly three-fourths of the space taken up this quarter was in buildings under ten years old, and flex has become the largest demand driver. The 'core plus flex' model has moved from an experiment to a strategic portfolio decision,” said Ram Chandnani, Managing Director, Leasing Services, CBRE India.

Hyderabad, Bengaluru and Delhi-NCR led quarterly leasing with a cumulative 69% share and maintained that lead over the nine-month period with 64% of activity.

According to the report, over half of the new supply added in Q3 and 9M 2026 came from premium Grade A+ assets. Green-certified assets — LEED or IGBC-rated — comprised 80% (15.0million sq. ft.) of quarterly completions and accounted for 82% (16.4 million sq. ft.) of quarterly leasing. Integrated technology parks remained the preferred delivery format, commanding 89% of supply during the quarter.

The next wave of GCC demand is expected to come not only from existing large-scale operations but also from a growing pipeline of emerging GCCs, including mid-sized, nano and micro firms establishing an initial footprint or scaling their presence. With AI adoption becoming nearly universal among GCCs, specialised talent remains a key priority: about 68% of surveyed firms prioritise it when selecting an office location.