BFSI and Flex Firms Lift India's Office Leasing in Q3

Banking, financial services and insurance firms and flexible workspace operators helped keep India's office leasing market resilient in the July-September quarter of 2026, a report released on Monday showed.

The report, compiled by a workplace solutions firm, pegged office space consumption at 23.7 million square feet for the quarter. That is a 20 percent annual gain, though demand was flat compared with the previous quarter due to geopolitical volatility.

According to the report, the third quarter of 2026 recorded the highest office space consumption on record. Grade-A office space in large cities continued to see strong demand.

IT and ITES companies remained the largest contributors to office leasing, but their share of total consumption dropped to 23 percent. In the second quarter of 2026, the sector held 41 percent, while in the third quarter of 2025 it stood at 31 percent.

Meanwhile, the BFSI sector's share surged to 20 percent. It had stood at 8 percent in the preceding quarter and 15 percent in the same quarter last year.

Flexible workspace operators also contributed significantly to consumption. Flex spaces and managed offices made up 20 percent of total leasing in the quarter. That was a little lower than 22 percent in the previous quarter, but far higher than 14 percent a year earlier.

The report said BFSI and flex space together accounted for 40 percent of overall leasing activity in the quarter.

Demand patterns varied across cities. BFSI companies led office space consumption in Chennai, Hyderabad and Kolkata. Flexible workspace leasing was highest in Pune and the National Capital Region. Most office demand in Bengaluru and Mumbai came from IT and ITES firms.