India’s commercial office market continued its strong growth trajectory in the first quarter of 2026, demonstrating resilience despite ongoing global economic uncertainties. According to the latest India Office Market Report by Cushman & Wakefield, gross leasing activity reached 21.9 million square feet (MSF) across the country’s top eight cities, reflecting a 13% year-on-year increase. This performance highlights the sustained confidence of businesses expanding their operations in India.
Mumbai emerged as the leading office leasing market, accounting for 30% of total leasing activity, followed by Bengaluru (23%) and Hyderabad (14%). The IT-BPM sector remained the largest contributor to office demand, while BFSI, flexible workspace operators and engineering and manufacturing companies also recorded significant leasing activity. Continued expansion by Global Capability Centres (GCCs) has been one of the biggest drivers of office space demand across major cities.
On the supply side, new Grade A office completions stood at 8.8 MSF, the lowest level in seven quarters. This limited supply, combined with healthy occupier demand, resulted in further tightening of vacancy levels and continued rental growth across leading office markets. Net absorption reached 11.5 MSF, reflecting sustained business expansion and increasing preference for premium office spaces.
Overall, the report indicates that India remains one of the most attractive destinations for commercial office investments. Strong corporate expansion, the rapid growth of GCCs and the increasing adoption of flexible workspaces continue to position the country for long-term growth in the commercial real estate sector, making India a preferred destination for global businesses seeking quality office infrastructure.
