NEW DELHI: In the first half of 2026, India’s office market achieved 35.7 million sq ft of gross leasing across the top seven cities, reflecting a 6% increase year-on-year, as reported by Colliers India.
Grade-A office space leasing reached 17.4 million sq ft in Q2 2026, marking a slight 2% decline compared to last year, amid cautious sentiment from occupiers influenced by global trade challenges and economic uncertainty.
Bengaluru led office leasing with a significant 10.5 million sq ft in H1 2026, making up 29% of the overall demand. Hyderabad followed with approximately 7.2 million sq ft, showcasing a remarkable 47% increase year-on-year.
Delhi-NCR, Mumbai, and Chennai each saw leasing levels between 4-5 million sq ft during H1 2026.
Quarterly analysis indicates that both Mumbai and Pune faced a 25-30% year-on-year dip in office space leasing during Q2 2026. The share of large transactions (100,000 sq ft and above) in Mumbai tumbled from around 41% in Q1 to 13% in Q2, while Pune’s share dropped from 63% to 38% in the same timeframe.
“The resilience of India’s office market in Q2 was bolstered by a strong performance in the previous quarter, mitigating the effects of ongoing global crises,” stated Arpit Mehrotra, Managing Director of Office Services, India, at Colliers.
Q2 2026 marked the ninth consecutive quarter where Grade-A office leasing across the top seven markets exceeded 15 million sq ft.
Colliers notes that ongoing demand for office space is largely driven by global capability centers, varied occupier requirements, and the rise of flexible workspaces.
New office supply in these markets totaled 22.5 million sq ft in H1 2026, a 9% decrease from last year. Bengaluru contributed 8.7 million sq ft of this new supply, representing 39% of the total, followed closely by Delhi-NCR and Mumbai at around 15-20% each.
In H1 2026, Mumbai reported 3.6 million sq ft of new office supply, witnessing an 80% increase year-on-year, thanks to developments in Navi Mumbai, Powai, and Thane. Office leasing in traditional spaces remained steady at 27.1 million sq ft, similar to the corresponding period in 2025. The technology sector accounted for 10.6 million sq ft of leasing, followed by the BFSI sector with 6.0 million sq ft, collectively representing over 60% of conventional office leasing.
The demand from the technology sector was primarily focused on Bengaluru and Hyderabad, while the BFSI demand was led by Mumbai and Bengaluru.
Flexible workspace leasing surged by 32% year-on-year, reaching 8.6 million sq ft in H1 2026. Bengaluru and Delhi-NCR were at the forefront of this trend, each accounting for 20-25% of the demand. Notably, flex leasing in Delhi-NCR and Hyderabad doubled compared to last year, as reported.
In Q2 2026, flex space leasing hit 4.6 million sq ft, more than 90% higher than the average quarterly demand seen over the past five years.
“Bengaluru and Hyderabad have collectively made up nearly half of the office space demand in H1 2026, benefitting from robust GCC space uptake across varied sectors,” commented Vimal Nadar, National Director and Head of Research at Colliers. He added that GCCs are projected to account for 40-50% of Grade-A office space uptake in 2026.
Vacancy rates in India remain stable at around 15%, primarily due to relocations and market churn. Average rental rates have seen an increase of up to 5% quarterly in certain high-activity micro-markets, according to the report.
