EMEA Flex Space Market Review for Q1 2024
- Reports
- May 1, 2024

India’s office market recorded its strongest-ever first quarter in 2026, with 21.5 million sq. ft. of gross leasing and 13.7 million sq. ft. of net absorption, according to JLL. Demand was led by GCCs (45.5%) and flex workspace operators (25.9%), while vacancy fell to a five-year low of 14.7%. Bengaluru emerged as the top-performing market, and tightening Grade A supply is expected to drive rental growth across major office hubs throughout 2026.
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Delhi NCR saw 2.8 million sq ft of leasing and strong net absorption of 3.1 million sq ft. Noida Expressway led demand. Vacancy declined to 21.06%, while rents rose 3–5% QoQ, particularly in Gurgaon CBD. With 13.9 million sq ft under construction, supply will shape the coming quarters.
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Hyderabad posted 2.62 million sq ft in leasing, doubling YoY. Net absorption hit 1.82 million sq ft, led by Healthcare, BFSI, and IT. Madhapur saw the most activity and rent growth. Vacancy held at 23.1%. A large pipeline and Metro expansion support long-term growth, especially in core micro-markets.
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Kolkata maintained steady leasing at 0.26 million sq ft, with BFSI and flex operators active. No new supply helped lower vacancy to 17.8%. Rents remained stable across micro-markets. With over 1.1 million sq ft under construction, moderate supply-led growth is expected in H2 2025 as demand holds steady.
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Mumbai hit a record 4.3 million sq ft in leasing, led by BFSI and IT-BPM. Net absorption surged 165% QoQ. Minimal new supply lowered vacancy to 12.75%. Rents rose across core submarkets. With tight vacancy and limited near-term completions, rents are expected to continue firming in prime areas.
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Chennai recorded strong leasing of 1.97 million sq ft, led by IT-BPM and manufacturing. Suburban South dominated activity. Vacancy declined with no new supply added. Rents appreciated in key submarkets. With a healthy demand outlook and limited new stock, rents may rise further as space tightens in core locations.
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