New Delhi, March 2026 – Demand for office space remained strong in Q1 2026 despite global uncertainties, with gross leasing of workspace rising 15% to 18.3 million sq ft across seven major cities, according to Colliers India – up from 15.9 million sq ft in Q1 2025. The seven cities covered are Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, and Pune. GCCs alone contributed nearly half of the total leasing during the quarter, indicating sustained confidence among global firms in India’s office market. On the supply side, new office space additions remained robust at 11.8 million sq ft in the first quarter, up 19% year-on-year. As demand continues to outpace new supply consistently, overall vacancy levels have dropped by close to 90 basis points on an annual basis, to around 15.3% at the end of Q1 2026.
City-by-City: Bengaluru Leads, Hyderabad and Pune Double
Bengaluru, the biggest office market, saw an 18% growth in office leasing to 5.3 million sq ft in Q1 2026. Hyderabad and Bengaluru together accounted for nearly half of total leasing 8.7 million sq ft combined. Other key markets including Mumbai, Pune, Delhi NCR, and Chennai also saw healthy demand, each recording leasing between 2 and 3 million sq ft. Notably, Hyderabad and Pune witnessed more than double the demand compared to a year ago.
On the supply side, Bengaluru contributed 47% of new completions, followed by Delhi NCR with a 17% share. Chennai and Mumbai each added 1.5 million sq ft.
Flex Operators Lead the Surprise Story
Flexible workspace operators are gaining significant traction, with leasing by flex space providers rising sharply by 77% year-on-year to nearly 4 million sq ft, making up 21% of overall leasing. Delhi NCR and Hyderabad led this segment, while Kolkata and Delhi NCR saw particularly strong adoption, with flex operators accounting for around 40% of total leasing in those markets.
Conventional office leasing dominated at 14.4 million sq ft, led by technology and BFSI companies together making up nearly two-thirds of this segment. Technology firms alone contributed 36% of conventional leasing, with Bengaluru and Hyderabad emerging as the top destinations.
