India's Leap Towards Sustainable & Innovative Workspace Design
- Industry News
- March 13, 2024

India’s commercial real estate market is expected to remain firm, with office and Grade-A mall occupancy potentially approaching 90% by March 2027. Strong leasing, GCC expansion and consumer spending are supporting demand, while office vacancy has already declined. Bengaluru, Hyderabad, Chennai and Delhi-NCR are expected to remain key growth markets.
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India’s property market is widening beyond traditional metros as infrastructure, employment hubs and connectivity drive new demand in Tier-2 and emerging cities. Gurugram highlights the impact of infrastructure-led growth, while smaller markets offer lower entry costs but greater liquidity risks. Investors are increasingly assessing absorption, infrastructure execution and market depth.
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Pune overtook Mumbai in quarterly office leasing during Q3 2026, recording 3.2 million sq ft of transactions against Mumbai’s 2.4 million sq ft. Pune also added 3.9 million sq ft of new supply, while Mumbai added 800,000 sq ft. Flexible workspaces accounted for 21% of overall transactions.
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India’s top eight office markets recorded 64.6 million sq ft of leasing in the first nine months of 2026, the highest for this period. Q3 absorption rose 26% quarter-on-quarter, while record new supply lifted vacancy to 14.37%. GCCs and flexible workspace operators remained key drivers of demand.
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India’s managed workspace sector is expanding beyond traditional coworking as enterprises seek customised offices with integrated design, delivery and operations. With office absorption reaching 66.4 million sq ft in the first nine months of 2026, operators are targeting corporate leasing demand through scalable workplace solutions and enterprise-focused business models.
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Mapletree Investments is exploring a potential REIT listing of four office parks in India. The proposed trust could raise up to $600 million at a valuation of around $2.5 billion. A Mumbai listing is being considered for mid-to-late 2027 as office demand and investor interest remain strong.
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