India’s Office Market Booms: 21.6M Sq Ft Leased in Q1 FY26

In a sign of enduring vitality, India’s commercial office leasing climbed 10% year-over-year to 21.6 million square feet during FY26’s first quarter, the briskest pace in five years. Details emerged in a report published Monday.

Supply dwindled 28% to 7.9 million square feet, complementing firm leasing to trim overall vacancy to 13.9%. Technology commanded 32% market share, with flexible operators at 22% and BFSI contributing 12%.

Notably, mega-leases of 100,000+ square feet comprised 52% of total volume. Savills India’s Commercial Advisory MD Navin Nandwani commented, ‘Global uncertainties haven’t dimmed India’s office prospects. We saw 21.6 million square feet absorbed in Q1, up 10% from last year, driven by tech, finance, manufacturing, flex workspaces, and accelerating GCCs.’

Bengaluru-Delhi NCR duo supplied around 5 million square feet anew—two-thirds of the country’s total. Bengaluru dominated leasing at 6 million square feet (25% YoY growth), propelled by IT-BPM activity.

Hyderabad surged 39% to 4.3 million square feet via major deals and GCCs. Pune grew 20% to 3 million square feet; Delhi-NCR reached 3.6 million. Mumbai recorded 2.8 million square feet.

These trends reflect strategic expansions by key industries, positioning India’s office sector for continued outperformance against global benchmarks.