Office space leasing across India soared to 21.6 million square feet in the opening quarter of FY26, reflecting a robust 10% increase from the previous year—the highest in half a decade. A Monday report unveiled these figures, underscoring market strength.
New supply contracted by 28% to 7.9 million square feet year-on-year, while consistent absorption drove vacancies to a healthier 13.9%. Tech sector grabbed the lion’s share at 32%, trailed by co-working spaces (22%) and financial services (12%).
Deals exceeding 100,000 square feet made up over half (52%) of activity. ‘India’s office market is entering 2026 with momentum intact, shrugging off global challenges,’ said Savills India’s Navin Nandwani. ‘Q1 leasing exceeded last year’s by 10%, with tech, BFSI, manufacturing, and flex spaces leading, amplified by GCCs.’
Key cities powered the surge: Bengaluru and Delhi-NCR added about 5 million square feet of fresh stock, comprising nearly 67% of national supply. Bengaluru led with 6 million square feet leased—a 25% YoY jump—thanks to IT and BPM firms.
Hyderabad posted a stellar 39% growth to 4.3 million square feet on large transactions and GCC demand. Pune climbed 20% to 3 million square feet. Delhi-NCR hit 3.6 million, but Mumbai trailed with 2.8 million square feet.
As businesses prioritize prime locations and flexible models, this quarter’s performance hints at sustained recovery and investor confidence in India’s tier-1 office hubs.
