Mumbai, October 26, 2026: India’s office gross leasing reached a record 61.06 million sq. ft in the first nine months of 2026, with a surge in activity during July-September (Q3) pushing quarterly leasing to 23.17 million sq. ft, according to data from JLL India.
This marks the strongest January-September performance on record, driven by a sharp rebound in deal closures and significant leasing by Global Capability Centres (GCCs). Net absorption for the period also hit an all-time high at approximately 42.0 million sq. ft, up 5.3% year-on-year.
Bengaluru leads city-wise leasing activity
Bengaluru continued to dominate office demand, accounting for 33.4% of Q3 2026 gross leasing and 28.0% for the nine-month period. Hyderabad followed with a 19.6% share in Q3, ahead of Delhi NCR at 18.1% and Mumbai at 12.4%. All four cities—Bengaluru, Hyderabad, Mumbai, and Pune—posted year-on-year growth in gross leasing volumes, with activity now more widely dispersed across major markets.
Flex operators secured a record 13.83 million sq. ft across the top seven cities in the first nine months, marking their highest-ever leasing in any comparable period. For Q3 2026, Bengaluru, Hyderabad, Delhi NCR, and Mumbai recorded gross leasing of 7.74 million sq. ft, 4.55 million sq. ft, 4.19 million sq. ft, and 2.87 million sq. ft respectively.
GCCs and sectoral trends drive demand
GCCs leased 26.2 million sq. ft in the nine months to September 2026, up 30.6% year-on-year and accounting for 42.9% of total leasing activity. This figure represents 84% of the full-year GCC leasing in 2025, which was itself a record year. Foreign occupiers made up 62.0% of leasing in Q3, a seven-quarter high, with Bengaluru accounting for 41.6% of all foreign occupier leasing during the quarter.
The technology sector led Q3 2026 leasing with a 25.6% share, closely followed by BFSI at 25.3%—the latter’s highest quarterly volume ever. Manufacturing/industrial occupiers accounted for 16.1%, while flex operators captured 15.5% of Q3 leasing.
Net absorption and vacancy trends
Net absorption reached a record 41.96 million sq. ft for the nine-month period, with Bengaluru leading at 13.12 million sq. ft (31.3% share), followed by Hyderabad at 8.97 million sq. ft (21.4%), Delhi NCR at 6.07 million sq. ft (14.5%), and Pune at 5.83 million sq. ft (13.9%). Q3 net absorption rose 14.1% quarter-on-quarter to 15.08 million sq. ft, the highest for the year.
Despite the record absorption, pan-India vacancy across the top seven cities rose marginally by 30 basis points quarter-on-quarter to 14.8%, though it remained 90 basis points lower year-on-year. The increase came amid 43.7 million sq. ft of new supply, the highest for any comparable period since the pandemic. Mumbai and Delhi NCR saw vacancy rates drop to their lowest in 16 and 15 years respectively, while Hyderabad’s vacancy remained stable despite strong supply additions.
Outlook for 2026 and beyond
JLL India expects office leasing in 2026 to match 2025’s historic levels, with gross leasing volumes potentially reaching the 100 million sq. ft mark over the next two to three years. The country’s status as a talent and AI development hub continues to attract global firms, particularly in banking, financial services, manufacturing, technology R&D, retail, logistics, infrastructure, and aerospace.
Radha Dhir, Chief Executive Officer, India, JLL, said, “Q3 showed what happens when confidence returns to India’s office market. Deals that were on hold in Q2 got signed, and occupiers backed their growth plans with firm commitments. India remains the centre of the global GCC ecosystem, and the numbers show it.”
JLL India is a real estate services firm with a research division, Real Estate Intelligence Service (REIS), providing market data and analysis.
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