“India‘s office market has maintained healthy momentum through the first nine months of 2026, with gross absorption reaching 60.7 mn sq. ft. in YTD. Sustained occupier demand, led by GCCs and corporate expansions across IT-BPM, Flexible Workspaces, and BFSI sectors continued to reinforce India‘s position as a preferred office market. Backed by strong business fundamentals and long-term confidence, we expect leasing activity to remain robust through the final quarter, with annual absorption likely to be around 74 million sq. ft.,” said Naveen Nandwani, MD, Commercial Advisory and Transactions, Savills India.

• In Q3 2026, India witnessed a slight increase in leasing activity, with gross absorption reaching 19.5 mn sq. ft., marking a 6% YoY growth.
• During Q3 2026, Bengaluru emerged as the top-performing market with about 5.3 mn sq. ft. of gross absorption, followed by Hyderabad (4.2 mn sq. ft.) and Delhi-NCR (3.4 mn sq. ft.).
• The IT-BPM sector dominated the leasing activity with 33% share, followed by flexible workspaces at 21% and BFSI at 10%.
• Large deals (100,000 sq. ft. or more) continued to dominate the gross leasing activity this quarter and contributed 46% to overall transactions.
• Hyderabad and Bengaluru together accounted for over 15.9 mn sq. ft. of new completions in Q3 2026, representing nearly 80% of the total supply added across India.
• Global Capability Centres (GCCs) continued to drive office space demand in India, contributing around 30% to total leasing activity with about 5.9 mn sq. ft. of office space, in line with the absorption recorded in the corresponding period a year ago. Hyderabad, Bengaluru, and Pune, and collectively accounted for around 75% of this GCC-led absorption.

• Bengaluru retained its position as India’s leading commercial leasing market, recording 18.0 mn sq. ft. of gross absorption in YTD 2026, up 25% YoY, with ORR accounting for 61% of overall leasing. Q3 absorption reached 5.3 mn sq. ft., up 36% YoY, driven by the IT, Flexible Workspace, and Engineering & Manufacturing sectors, which collectively contributed 74% of quarterly demand. GCCs remained a key demand anchor, accounting for 53% of YTD and 32% of Q3 leasing.

• Delhi-NCR emerged as the key contributor in the office market in Q3 2026, recording gross absorption of 3.4 mn sq. ft., while ranking third nationally on a YTD basis with cumulative leasing of 9.6 mn sq. ft. The quarter’s momentum was driven by Flexible Workspaces and IT-BPM occupiers, which accounted for 38% and 17% of leasing activity, respectively. Large-sized transactions contributed around 43% of total absorption. Meanwhile, GCC leasing reached 0.7 mn sq. ft., reaffirming NCR’s growing appeal among global enterprises seeking scale, talent access and high-quality office infrastructure.

• Mumbai recorded gross absorption of 2.7 mn sq. ft. in Q3 2026, up 13% YoY, taking YTD leasing to 8.7 mn sq. ft. Demand was led by BFSI at 34% of leasing activity, followed by Real Estate (7%) and Healthcare & Pharma (7%). Small and mid-sized deals accounted for 89% of absorption. Mumbai remained the tightest market among the top six cities, with vacancy at 5.5%. New supply of 1.4 mn sq. ft. was driven mostly by non-IT buildings, which accounted for 93% share to the total supply.

• Hyderabad stands out for its strong all-round performance, coupled with robust rental growth. The city recorded a YTD gross absorption of 10.1 mn sq. ft., ranking second among the top six cities. In Q3, gross leasing activity totalled around 4.2 mn sq. ft., driven primarily by large deals (100,000 sq. ft. or more), which accounted for 2.3 mn sq. ft. and 54% of overall leasing activity. The IT-BPM sector continued to lead demand, occupying 44% of the total leased space (1.9 mn sq. ft.), followed by flexible workspaces (16%) and healthcare & pharma (14%) sectors. GCCs remained a key demand engine, leasing approximately 1.8 mn sq. ft., about 43% of Hyderabad’s Q3 leasing activity.

• Pune recorded its highest-ever YTD gross absorption of 8.5 mn sq. ft. in 2026. Q3 2026 gross absorption stood at 2.1 mn sq. ft., down 25% YoY, following the strong leasing activity recorded in the previous quarter. Large-sized transactions accounted for 52% of Q3 leasing. IT-BPM remained the largest demand driver, contributing at 40% of quarterly absorption, followed by flexible workspaces 25% and BFSI at 20%.

• Chennai recorded 5.8 mn sq. ft. of gross absorption during YTD 2026, including 1.8 mn sq. ft. in Q3, which is up 13% YoY. Quarterly demand was led by IT-BPM, contributing 54% of the leases, followed by flexible workspaces (18%) and research & consulting (10%)