From Bengaluru to NCR: Forecasting India's Office Demand in 2026
According to the report titled “2026 India office: Unlocking agility, vitality and flight-to-quality”, India’s office market is expected to maintain strong momentum in the coming years. The report forecasts a total demand of 70–75 million sq ft and a new supply of 60–65 million sq ft by 2026. This growth will be primarily driven by the country’s top office markets, with several key cities anchoring leasing activity and development pipelines.
Bengaluru is likely to maintain its status as the leading city, accounting for nearly one-third of total leasing and supply additions. The city is forecasted to experience office demand between 20 to 25 million sq ft in 2026, supported by the expansion of Global Capability Centres (GCCs) and sustained demand from technology companies. The market is also expected to maintain its new supply growth at 17 to 20 million sq ft.
Hyderabad and Delhi NCR are expected to function as the next key growth engines. The two markets are projected to reach a demand and new supply of over 10 million sq ft each, highlighting their increasing significance in India’s office market. Hyderabad benefits from its robust IT infrastructure, while Delhi NCR sees rising development activity and growth in diversified sectors.
Mumbai is likely to maintain a steady performance with demand projected between 9 to 10 million sq ft and supply estimated to rise 5 to 7 million sq ft. The office market in India's financial capital continues to be fueled by the financial services sector and a gradual shift towards premium, Grade A spaces.
Pune is expected to experience stable demand ranging between 7 and 9 million sq ft, with supply holding strong at 10–12 million sq ft. The city continues to attract businesses due to its lower operational costs and available talent pool, especially in the fields of IT and manufacturing.
In the southern market, Chennai is expected to see relatively stable market trends, with demand projected to reach 8 to 10 million sq ft, while supply remains at 4 to 5 million sq ft. The city maintains consistent growth due to its diversified occupier base, including technology, BFSI, and manufacturing.
Kolkata, on the other hand, is likely to see a gradual uptick, albeit from a smaller base. Demand is projected at 1–2 million sq ft, with supply expected to increase to similar levels, indicating renewed activity in the market.
India's office sector is expected to experience continuous growth for the next decade. The report forecasts the Grade A office market to reach over 1 billion sq ft by 2030, while annual office demand is expected to reach 90 to 100 million sq ft and annual office supply around 75 to 85 million sq ft. The main cities are projected to experience a decrease in vacancy rates through steady demand, which is projected to bring the rates down to 15 per cent in 2026 and to 13 to 14 per cent by 2030. The rental market is expected to increase, with prices reaching Rs 110 to 115 per sq ft for monthly rent in 2026 and potentially hitting Rs 120 to 130 by the decade's conclusion.
