New Delhi [India], October 26 : India's office leasing activity touched a record 61.06 million square feet (msf) in the January-September period of 2026, the highest ever for the corresponding nine-month period, according to a report by JLL.
The report said office leasing is on track to match the total recorded in 2025 and could approach 100 msf annually over the next two to three years, supported by continued demand from occupiers.
Gross leasing activity rebounded in the July-September quarter (Q3 2026), rising to 23.17 msf as transactions that had been delayed during the previous quarter were finalised.
Bengaluru led the market with a 33.4 per cent share of total leasing in Q3, followed by Hyderabad at 19.6 per cent and Delhi-NCR at 18.1 per cent. Mumbai accounted for 12.4 per cent of the total.
For the first nine months of 2026, Bengaluru maintained its lead with a 28 per cent share of leasing, followed by Delhi-NCR, Hyderabad, Mumbai and Pune.
Radha Dhir, Chief Executive Officer, India, JLL, said the third quarter reflected renewed confidence in the office market.
"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."
Global Capability Centres (GCCs) continued to drive demand for office space, with companies expanding their operations in India.
"India remains the centre of the global GCC ecosystem, and the numbers show it. In just nine months of 2026, GCCs have leased 26.2 msf, which is already 84% of what they took in all of 2025, a record year."
Dhir said GCC leasing increased 30.6 per cent year-on-year and accounted for 42.9 per cent of total office demand during the period. Foreign occupiers contributed 62 per cent of leasing, the highest share in seven quarters.
"With active negotiations continuing and more GCCs preparing to set up here, 2026 is set to comfortably go past last year's record," she added.
Highlighting India's importance as a business destination, Dhir said companies were continuing to invest despite global uncertainties.
"Companies aren't waiting for global uncertainty to clear. They are building in India because this is where their talent and growth are," she said.
Among sectors, technology accounted for 25.6 per cent of office leasing in Q3, while banking, financial services and insurance (BFSI) contributed 25.3 per cent, recording its highest-ever quarterly leasing volume.
Manufacturing and industrial companies accounted for 16.1 per cent of leasing, while flexible workspace operators contributed 15.5 per cent.
During the January-September period, flexible workspace operators leased a record 13.83 msf across India's top seven cities. They accounted for 52 per cent of the total office space taken up by domestic companies.
Net absorption, which measures the increase in occupied office space, reached a record 42 msf during the first nine months of 2026, registering a 5.3 per cent year-on-year increase.
However, average office vacancy across the top seven cities rose by 30 basis points quarter-on-quarter to 14.8 per cent. This came as 43.7 msf of new office space was completed, the highest level of quarterly supply recorded in the post-pandemic period, the report said.