India’s Office Space Absorption Hits Record 66.4 Million Sq Ft in Jan-Sep: CBRE

Office space absorption in the July-September quarter stood at nearly 21 million square feet, up 6 per cent year-on-year.

New office supply also reached a record level, with nearly 51 million square feet added during the first nine months of the year, an 18 per cent increase over the corresponding period in 2025.

Completions during the third quarter stood at nearly 19 million square feet, representing a 26 per cent year-on-year increase. Hyderabad, Bengaluru and Pune accounted for nearly 89 per cent of the space completed during the quarter.

“Flex operators, BFSI and technology occupiers are all expanding simultaneously, while occupiers across the board continue to gravitate towards higher-quality buildings. That breadth of demand is what gives this cycle its durability,” said Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE.

Global Capability Centres (GCCs) remained a major source of demand. GCCs leased nearly 8.7 million square feet during the third quarter, taking their total absorption during the first nine months of 2026 to a record 28 million square feet.

GCC leasing during the nine-month period increased 16 per cent year-on-year and accounted for 42 per cent of overall office leasing.

Hyderabad led quarterly GCC leasing with a 37 per cent share, followed by Bengaluru at 28 per cent. Within the banking, financial services and insurance segment, GCCs accounted for 76 per cent of leasing during the quarter.

“Three-fourths of the space taken up this quarter was in buildings under ten years old, and flex has become the largest demand driver. The core plus flex model has moved from an experiment to a strategic portfolio decision,” said Ram Chandnani, Managing Director, Leasing Services, CBRE India.

More than half of the office space added during both the third quarter and the first nine months of 2026 came from premium Grade A+ buildings, according to the report.

CBRE said the office sector remains on course for another strong year, supported by healthy occupier enquiries and deal closures as global and domestic companies continue to expand their office footprints.

The report also found that nearly 77 per cent of occupiers expect to increase their office portfolios in India over the next two years.

Steady economic growth and India's large talent pool are expected to support office demand despite a cautious global macroeconomic environment, the report said, adding that these factors continue to support corporate expansion in the country.