Bengaluru Dominates India's Office Leasing Market in Q1 2026

Bengaluru has emerged as India’s top office market in the January-March quarter of 2026, capturing 24.8% of national leasing volumes. The city's exceptional performance is highlighted by a 70% share from Global Capability Centres (GCCs), the highest concentration in two years, according to a report by JLL.

Bengaluru leased 5.3 million sq ft of office space in Q1 2026, marking a 24.7% increase from 4.3 million sq ft in the same period last year. The city also captured 33% of all leasing by foreign occupiers during the quarter.

Mumbai followed with a 19.5% share, while Hyderabad accounted for 16.8%, Pune for 14.5%, and Delhi NCR for 14.2%. Bengaluru's performance was driven by robust pre-commitments converting into occupied space in newly completed projects. The city continues to attract multinational occupiers setting up engineering, AI, product development, and digital transformation hubs.

“Bengaluru has been the standout performer, capturing 24.8% of national leasing volumes with an exceptional 70% GCC share, the highest concentration in two years. The city's 52% surge in net absorption to 4.9 million sq. ft., representing 36% of India's total, underscores its position as the undisputed destination of choice for global firms establishing strategic command centres,” said Rahul Arora, head - Office Leasing and Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.

With nearly 200 new GCCs established across India between 2024 and 2025, and current deal pipelines indicating momentum toward the 100 million sq. ft. annual milestone over the next two years, we're witnessing India's evolution from cost centre to innovation epicentre, with Bengaluru firmly at the forefront of this multi-year growth trajectory.

Bengaluru, in fact, saw GCCs account for a 70% share of the quarterly gross leasing activity in the city (the strongest in two years), showcasing the inherent strength of Bengaluru in retaining its status as the frontrunner for the setting up of strategic hubs by global firms. Alongside Bengaluru, other major office markets included Mumbai with a 19.5% share of national leasing, Hyderabad at 16.8%, Pune at 14.5%, and Delhi NCR at 14.2%.

Hyderabad accounted for 22.6% of India’s net absorption during the quarter, followed by Mumbai at 12% and Delhi NCR at 10.7%.

At the national level, gross leasing stood at 21.5 million sq ft, marking a 10.2% year-on-year increase and exceeding the average quarterly volumes seen in 2025. Global Capability Centres (GCCs) remained the largest occupier category, accounting for a 45.5% share, with leasing of around 9.8 million sq ft during the quarter, up 43% year-on-year. Flexible workspace operators also recorded strong activity, taking up 5.56 million sq ft across the top seven cities, while the technology sector contributed 29.1% of total leasing demand, according to JLL.

With lower new completions and sustained net absorption during the quarter, pan India vacancy further declined to a five-year low of 14.7%, down by 50 basis points quarter-over-quarter. The core sub-markets across cities continued to witness single-digit vacancies. In fact, vacancy rates are at historic lows in Mumbai over the last 16 years and in Delhi NCR over the past 15. The current vacancy in Kolkata is also at a 17-year low, and in the case of Hyderabad, with robust space take-up has now fallen to a two-year low.