India’s commercial real estate market continued to demonstrate resilience in 2026, with net office space absorption reaching 42.9 million square feet during January–September, according to Anarock Research & Advisory. This represents a 2% increase compared with 42 million square feet recorded during the same period in 2025.
Flexible workspaces and the banking, financial services and insurance (BFSI) sector emerged as major demand drivers, together accounting for 47% of total office demand. Coworking led the market with a 26% share, followed by IT/ITeS at 25% and BFSI at 21%.
Bengaluru and Hyderabad recorded strong growth in office absorption, highlighting their continued importance as commercial real estate destinations. Meanwhile, new office completions across India’s top seven cities increased by 5% to 41.1 million square feet.
The market also witnessed improving occupancy conditions. The overall office vacancy rate declined to 15.15% from 16.2% a year earlier, while average office rentals increased by 8% to ₹97 per square foot per month.
Mumbai Metropolitan Region (MMR) retained its position as the most expensive office market, with average rentals reaching ₹156 per square foot per month.
The growing demand for coworking spaces reflects businesses’ increasing preference for flexible workplace solutions. As companies adapt to changing workforce requirements and expansion plans, flexible office formats are expected to remain an important part of India’s commercial real estate landscape.
