India’s office market shows resilience as occupier confidence strengthens.

India Office Leasing Climbs 10% to 21.6 Million Sq Ft in Q1 2026 on Tech and GCC Demand.

India’s office market recorded a strong start to 2026, with gross leasing rising 10% year-on-year to 21.6 million sq ft in the January–March quarter, according to a report by Savills India. The robust demand pushed absorption to a five-year high, despite global economic uncertainties. New supply during the quarter declined 28% annually to 7.9 million sq ft, leading to a moderation in overall vacancy levels to 13.99%. Bengaluru led leasing activity with 6 million sq ft, followed by Hyderabad at 4.3 million sq ft and Delhi-NCR at 3.6 million sq ft. Pune registered strong growth, while Mumbai and Chennai saw relatively softer absorption. Technology firms remained the largest demand driver with a 32% share, followed by flexible workspace operators and BFSI players. Large deals of over 100,000 sq ft accounted for more than half of total leasing, reflecting occupiers’ preference for scale. Global capability centres continued to anchor demand, particularly in Bengaluru and Hyderabad.