India's Office Absorption Set to Surpass 60-70 Million Sq Ft in Top 6 Cities by 2026

India’s commercial real estate sector is set for a major resurgence, with net office absorption across major Indian cities projected to reach 69-70 million sq ft by 2026. This growth is powered by the rise in Global Capability Centers (GCCs), the expansion of IT and ITES firms, a boom in flexible workspaces, and strong demand from the BFSI and engineering sectors.

The top 6 cities have marked one of the strongest annual performances in recent years. India’s commercial real estate market is showcasing remarkable resilience and renewed momentum in office leasing and rental growth. Companies are expanding their footprints through hybrid work models, which are stabilizing with global enterprises increasing their investment in India. Net office absorption in India has increased by 35% year-over-year (Y-O-Y) in Q3 2025, reflecting economic growth and positioning India as a global business powerhouse.

Top 6 Cities Rise in Net Office Absorption

1. Bengaluru India’s startup and IT hub continues to lead in commercial office demand, with large leasing from tech majors, GCCs, and startups. Bengaluru’s office space absorption grew strongly in Q3 2025, reaching about 3.5 – 3.9 million sq. ft. with gross leasing at 4.2 – 4.8 million sq. ft. and 31% Y-O-Y growth. GCC-led leasing accounted for 42-45% of the share in Q3. The office spaces are in high demand in key areas like Outer Ring Road, Whitefield, Electronic City, and South Bangalore District. Flexible workspace operators and engineering R&D firms are also driving occupancy of office space.

2. Chennai Chennai continues its consistent demand pattern with steady leasing activity driven by manufacturing, IT, GCCs, and automotive R&D. The net absorption reached 2.28-2.3 million sq. ft. in Q3 2025, recorded highest in areas like Old Mahabalipuram Road (OMR) and peripheral corridors, with high absorption of new supply nearly 68% by IT-BPM and flex occupiers.

3. Hyderabad The city of pearls office space market saw strong Q3 2025 growth with gross leasing volume at 2.83 million sq. ft. and net absorption at 1.42 million sq. ft. driven by mid-sized deals, MNCs, and sectors like IT-BPM, flexible workspaces, engineering & manufacturing, healthcare & pharma. Key micro-markets have seen a surge in office space, with 1.14 million sq. ft. entirely in Madhapur and Gachibowli, offering 25-30%. This city is emerging among global companies for GCCs and multinational office setups.

4. Mumbai India’s financial capital is seeing rising interest from BFSI, Fintech, and global consulting firms. Premium office districts such as BKC and Lower Parel remain hotspots for office space leasing. This city’s office market recorded gross leasing of 4.4 million sq. ft. in Q3 2025, with net absorption at 2.1 million sq. ft. Mumbai provides Grade A+ office spaces in micro-market areas. Navi Mumbai Airport has spurred leasing migration to emerging hubs. Mumbai office rents grew 2% quarter-over-quarter (QoQ) in key spots, reflecting an occupier shift to scalable tech-enabled campuses.

5. Delhi NCR NCR remains a steady performer, especially in Gurugram and Noida, with a blend of IT hubs, corporate headquarters, and financial institutions. Delhi NCR’s office market achieved gross leasing of 5.1 million sq. ft. in Q3 2025 and net absorption of 3.9 million sq. ft. Gurugram has 70-72% absorption, particularly along NH 8, while Noida captured 23% via the Noida-Greater Noida Expressway. New supply hit 3.03 million sq. ft. Office rents rose 3% QoQ and 8% YOY. The completion of Worldmark Tower 4 and infrastructure upgrades linking submarkets boosted decentralized demand from GCCs, flex operators, and BFSI.

6. Pune Pune’s office market in Q3 2025 saw new supply surge 164% YOY to 3.7 million sq. ft., with gross leasing at 3.2 million sq. ft. Hinjewadi, Kharadi, and Baner dominate in Grade A office leasing, with a 53% QoQ and 90% YOY increase. Pune GCC developments led to 25% office leasing, followed by engineering and manufacturing. Ring Road and metro expansions enhanced access to Hinjewadi-Kharadi, pre-leasing in amenity-rich campuses.

Future Outlook India is growing as a global GCC hub with infrastructure upgradation in major metro cities, increasing preference for premium, sustainable Grade A office spaces, and strong hiring trends in tech, engineering, and BFSI. India is entering a phase of accelerated growth, with net absorption expected to reach 69-70 million sq. ft. across Bengaluru, Chennai, Hyderabad, Delhi NCR, Mumbai, and Pune. The commercial real estate landscape is witnessing major upgradation and developments, strengthening the office real estate sector.