India’s net office leasing declined 20% year on year to 36.7 million square feet across eight major cities during January–September 2026, as limited availability of quality office space and a high comparison base weighed on the figures. However, gross leasing increased 1% to a record 64.6 million square feet, indicating that companies continued to sign leases, renew existing offices and commit to future space despite the decline in net absorption.
The figures, released by real estate consultancy Cushman & Wakefield on October 10, 2026, show that office-market performance varied significantly by city. Mumbai, Delhi-NCR, Pune, Chennai and Kolkata recorded lower net leasing, while Bengaluru, Hyderabad and Ahmedabad reported increases. The data suggest that supply constraints and differences in local market conditions are shaping office occupancy trends, even as global capability centres (GCCs) and other corporate occupiers continue to drive demand.
Key takeaways
- Net office leasing across India’s eight major cities fell 20% to 36.7 million sq ft in January–September 2026.
- Gross leasing increased 1% to 64.6 million sq ft, the highest level recorded for the first nine months of a year, according to Cushman & Wakefield.
- Mumbai’s net leasing declined 46%, while Delhi-NCR and Chennai each recorded a 48% fall.
- Bengaluru’s net leasing rose 16% to 11 million sq ft, while Hyderabad recorded a 41% increase to 7.3 million sq ft.
- Limited additions of quality office space during the first half of the year and a strong 2025 comparison base contributed to the decline in net absorption.
- GCCs continue to support demand as multinational companies use India for technology, engineering, finance and other business operations.
India Office Leasing: January–September 2026 Data
Cushman & Wakefield’s figures highlight the difference between the amount of office space companies lease and the net change in occupied space across a market.
| Office market indicator | January–September 2026 | Year-on-year change |
|---|---|---|
| Net office leasing | 36.7 million sq ft | -20% |
| Net office leasing in January–September 2025 | 46 million sq ft | — |
| Gross office leasing | 64.6 million sq ft | +1% |
| Net absorption in Q3 2026 | 14.1 million sq ft | — |
Source: Cushman & Wakefield data reported by The Economic Times and other publications. Figures are rounded.
Net absorption, also referred to as net leasing in the report, measures the net change in occupied office space over a period. Gross leasing captures a broader set of transactions, including fresh leases, renewals and pre-leasing commitments.
The difference between the two measures is central to interpreting the latest figures. Gross leasing can remain strong even when net absorption declines, particularly when companies renew existing space rather than expand, or when the availability of suitable new offices limits the amount of additional space they can occupy.
Cushman & Wakefield said gross leasing reached its highest-ever level for the January–September period. The consultancy also attributed the decline in net absorption partly to a strong base in 2025 and limited additions of fresh office supply during the first half of 2026.
The data therefore point to a market where corporate leasing activity remains substantial, but the net addition of occupied space has slowed.
Why Did Net Office Leasing Fall 20%?
Limited availability of quality office space
One of the key reasons cited by Cushman & Wakefield was the limited availability of fresh, high-quality office space in several markets during the first half of 2026.
Office leasing depends not only on whether companies want to expand but also on whether suitable buildings are available in the locations they prefer. Businesses may need offices with modern infrastructure, reliable connectivity, energy-efficient facilities, appropriate floor plates and access to transport and employees.
When the supply of such offices is constrained, companies may postpone expansion, renew existing leases or commit to space that will become available later. These decisions can limit immediate net absorption even when underlying demand remains healthy.
The supply issue is particularly important in major business districts where multinational companies and GCCs often seek large office blocks. Large occupiers may require substantial contiguous space, which can be difficult to secure in markets with limited ready-to-occupy inventory.
The consultancy reported a significant increase in office completions during the September quarter, which it expects to help create capacity for the next phase of expansion.
A strong comparison base in 2025
The year-on-year decline was also influenced by the high level of net leasing recorded during January–September 2025.
When a market posts unusually strong absorption in one period, the following year’s performance can appear weaker even if companies continue to lease substantial amounts of space. In this case, net leasing declined from 46 million sq ft in the first nine months of 2025 to 36.7 million sq ft in the corresponding period of 2026.
The comparison base is an important part of the explanation, but it does not eliminate the reported slowdown. The decline in net absorption remains significant and shows that the amount of additional occupied space was lower than a year earlier.
Companies are planning further ahead
Occupiers are also increasingly committing to office space before it becomes available. Pre-leasing allows companies to secure premises for future expansion and gives developers greater visibility into demand before completing buildings.
Cushman & Wakefield said pre-commitments were gaining traction, with businesses considering a broader range of locations beyond established office hubs.
This trend can alter the timing of reported leasing activity. A company may sign an agreement for a building under development well before it moves employees into the premises. Depending on the reporting methodology, that commitment may appear in gross leasing before the space contributes to occupied stock.
The shift towards advance planning is therefore relevant when interpreting the gap between gross leasing and net absorption.
City-Wise Office Leasing: Bengaluru and Hyderabad Lead Growth
Performance differed substantially across India’s major office markets. Bengaluru and Hyderabad recorded increases in net leasing, while Mumbai, Delhi-NCR, Chennai and Pune saw notable declines.
| City | Jan–Sep 2026 net leasing | Jan–Sep 2025 net leasing | Year-on-year change |
|---|---|---|---|
| Bengaluru | 11.0 million sq ft | 9.5 million sq ft | +16% |
| Hyderabad | 7.3 million sq ft | 5.2 million sq ft | +41% |
| Ahmedabad | 1.2 million sq ft | 0.7 million sq ft | +81% |
| Mumbai | 4.1 million sq ft | 7.6 million sq ft | -46% |
| Delhi-NCR | 5.0 million sq ft | 9.6 million sq ft | -48% |
| Chennai | 2.8 million sq ft | 5.4 million sq ft | -48% |
| Pune | 4.2 million sq ft | 6.9 million sq ft | -39% |
| Kolkata | 1.1 million sq ft | 1.2 million sq ft | -12% |
Source: Cushman & Wakefield data reported on October 10, 2026. Figures are rounded.
Bengaluru remains the largest market
Bengaluru recorded net leasing of 11 million sq ft during the first nine months of 2026, up 16% from 9.5 million sq ft a year earlier.
The city remains an important destination for technology companies, GCCs and businesses seeking skilled employees across software development, engineering, research and business services.
Its position as India’s largest office market gives it a substantial base of corporate occupiers. The increase in net leasing indicates that Bengaluru continued to add occupied space despite the wider decline across the eight-city market.
However, the city’s performance does not mean every office district or property segment experienced the same conditions. Demand can differ by building quality, rental levels, transport access and the type of business seeking space.
Hyderabad records a 41% increase
Hyderabad’s net leasing rose to 7.3 million sq ft from 5.2 million sq ft in the year-ago period, an increase of 41%.
The city has become an important destination for technology companies and multinational businesses establishing or expanding GCC operations. Office demand is supported by its corporate campuses, technology clusters and availability of space for large occupiers.
The increase suggests that Hyderabad was able to attract additional occupied-space demand during a period when several other major markets recorded declines.
The figure should nevertheless be read alongside new supply, rental trends and the availability of suitable buildings. Strong net leasing can increase the need for further office completions, particularly if occupiers continue to seek large, modern premises.
Ahmedabad posts the fastest percentage growth
Ahmedabad’s net leasing rose 81% to 1.2 million sq ft from 0.7 million sq ft during January–September 2025.
Although the percentage increase was the largest among the eight cities, the absolute volume remained considerably smaller than Bengaluru’s or Hyderabad’s. A relatively small starting base can produce a high percentage increase when leasing rises by a few hundred thousand square feet.
The growth indicates a rise in net office-space uptake in Ahmedabad, but the city’s long-term position will depend on whether corporate demand continues to expand and whether developers provide the right mix of office properties.
Mumbai, Delhi-NCR and Chennai record steep declines
Mumbai’s net leasing fell 46% to 4.1 million sq ft from 7.6 million sq ft. Delhi-NCR recorded a 48% decline to 5 million sq ft from 9.6 million sq ft, while Chennai’s net leasing fell 48% to 2.8 million sq ft from 5.4 million sq ft.
Pune also recorded a substantial decline, with net leasing falling 39% to 4.2 million sq ft from 6.9 million sq ft. Kolkata saw a smaller decrease of 12% to 1.1 million sq ft.
These figures show that the overall decline was not evenly distributed across the country. Some of the largest markets recorded substantial reductions in net absorption, while other cities continued to expand.
The data do not establish a single cause for each city’s decline. Local supply conditions, the timing of large leases, the mix of corporate occupiers and the comparison base can all influence market-level results.
Global Capability Centres Continue to Support Demand
Global capability centres are an important source of office demand in India. GCCs are facilities established by multinational companies to conduct functions such as technology development, finance, analytics, research, engineering and business operations.
India’s large skilled workforce and cost competitiveness have made it an attractive location for companies seeking to establish or expand these centres. GCCs can also generate demand for modern office space, particularly when operations require collaboration, secure technology infrastructure and access to specialised talent.
Cushman & Wakefield credited GCCs with supporting the market’s gross leasing activity during the first nine months of 2026.
The demand is not limited to traditional software development. Multinational companies increasingly use Indian operations for a wider range of business functions, including research, product engineering, financial services and data-related work.
GCCs can create substantial office requirements when they expand teams or consolidate operations. Their leasing decisions may also influence the choice of location, the quality of buildings demanded and the development of new office districts.
However, GCC activity does not guarantee that net absorption will rise uniformly across every city. The impact depends on where companies establish operations, whether they expand existing premises or take new space, and how much suitable inventory is available.
How Office Supply Could Shape the Next Phase
The increase in office completions during Q3 2026 may help ease some of the supply constraints that affected the first half of the year.
New completions add premises that companies can occupy, giving businesses more options when relocating or expanding. They can also help developers secure leases before or soon after buildings become operational.
Yet additional supply does not automatically translate into higher net absorption. Developers must deliver space that matches occupier requirements in terms of location, quality, rental levels and timing.
Companies may also take longer to commit to large office requirements when economic and geopolitical uncertainty makes future hiring plans harder to forecast. In those circumstances, pre-leasing and flexible office arrangements can help businesses preserve options.
The balance between supply and demand will therefore remain important for landlords, developers and investors. Markets with strong corporate demand and limited quality inventory may experience different rental and vacancy trends from locations where new construction outpaces leasing.
Cushman & Wakefield said the additional completions recorded during the September quarter should help create capacity for future expansion. The extent to which this translates into higher net absorption will become clearer in subsequent quarterly data.
Why the Numbers Differ Across Real Estate Reports
India’s office market is covered by several property consultancies, including Cushman & Wakefield, CBRE, Colliers and JLL. Their reports can produce different headline figures because they may measure different markets, types of leasing or definitions of absorption.
For example, Colliers reported that office leasing across India’s top seven markets reached 54.4 million sq ft during January–September 2026, up 7% year on year. CBRE separately reported office absorption of 66.4 million sq ft over the same period, up 8%.
Those figures should not be directly compared with Cushman & Wakefield’s 36.7 million sq ft of net leasing without accounting for methodology and market coverage. The consultancies may differ in whether they report gross leasing, net absorption, conventional office space, flexible-office transactions or a particular set of cities.
This distinction is essential for accurate reporting. A decline in one consultant’s net-absorption measure does not necessarily contradict growth in another firm’s broader leasing measure.
For readers and investors, the most useful approach is to compare like-for-like data from the same consultancy and the same reporting series over time.
The Bigger Picture
India’s office market recorded lower net leasing during January–September 2026, but gross leasing reached a record level for the period, according to Cushman & Wakefield. The difference suggests that the market remains active even as the net addition of occupied space has slowed.
Supply constraints and a strong comparison base contributed to the decline, while city-level results showed that demand remained stronger in Bengaluru, Hyderabad and Ahmedabad than in several other major markets. GCCs continue to provide a source of corporate demand, and increased office completions could create additional capacity for future expansion.
The market’s direction will depend on whether occupiers translate their commitments into occupied space and whether developers can deliver offices that meet corporate requirements. Headline leasing figures alone are not enough to establish whether every city or property segment is strengthening or weakening.
Looking Ahead
The next quarters will show whether the additional office supply completed during Q3 helps lift net absorption and whether gross leasing momentum continues. Investors and developers will watch new completions, pre-leasing commitments, rental growth, vacancy levels and the distribution of demand across major cities. GCC expansion and technology-sector leasing will remain important indicators, but their effects will vary by market.
For now, the January–September data point to a market with substantial leasing activity but slower net absorption. The distinction between gross leasing and net leasing is central to understanding the results: companies continue to sign leases and plan future expansion, while the amount of additional occupied office space remains below last year’s level.
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