India’s Office Market Starts 2026 Strong with 13.5 Million Sq. Ft. Absorption, Bengaluru Leads the Surge
- Industry News
- May 21, 2026

India’s Grade-A office market recorded 13.5 million sq. ft. of net absorption in Q1 2026, led by Bengaluru, Hyderabad, and Chennai. GCCs accounted for nearly 47% of leasing demand, while vacancy levels improved across major cities as occupiers continued prioritising premium, sustainable, and future-ready office developments.
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Incuspaze has leased 60,000 sq. ft. of Grade-A office space at Million Minds Tech City, Ahmedabad. The workspace will accommodate over 1,200 seats and strengthen the company’s Gujarat expansion strategy. The development highlights rising GCC demand, strong leasing momentum, and Ahmedabad’s emergence as a major commercial and innovation hub.
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Smartworks Coworking Spaces has expanded its Gurugram portfolio by adding 4,02,200 sq. ft. of workspace capacity, investing nearly ₹60 crore. The expansion comes as enterprise demand for flexible offices continues to rise across NCR, with the company already operating at 82% occupancy in its managed workspace portfolio.
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US-based real estate consultancy Vestian has entered India’s managed workspace sector with the launch of “Vestian Spaces.” The company has opened its first Bengaluru centre and plans to scale beyond 2 million sq. ft. over the next three years across key office markets, including Hyderabad, Chennai, Mumbai, Pune, and NCR.
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