India’s office market recorded its strongest Q1 performance, with gross leasing rising 10% and net absorption up 7% across seven major cities. Growth was driven by GCC expansion and by flexible workspace operators, with Bengaluru leading demand, and foreign firms accounting for nearly half of total leasing activity.
JLL India data shows that India’s office market has begun 2026 on a strong note, despite ongoing global economic uncertainties. Gross leasing rose 10% year-on-year to 21.5 million sq. ft in the January–March quarter, while net absorption increased 7% to 13.7 million sq. ft across the top seven cities.
This performance highlights the sector’s resilience, supported by strong occupier demand and evolving workplace strategies. The data covers major markets including Bengaluru, Mumbai, Delhi NCR, Pune, Hyderabad, Chennai, and Kolkata.
GCC Expansion Fuels Leasing Momentum
A key driver behind this growth is the rising presence of Global Capability Centres (GCCs). Leasing by foreign firms surged 43% year-on-year to 9.8 million sq. ft, accounting for 45.5% of total leasing activity during the quarter.
Rahul Arora, Head – Office Leasing at JLL India, noted, “India’s office market has delivered its strongest-ever first quarter…that demonstrates remarkable resilience despite global headwinds.” He further added, “These are not traditional back-office operations; they are strategic innovation hubs focused on AI development, digital engineering and core product development.”
This shift signals a move from cost-driven outsourcing to high-value, innovation-led operations.
Bengaluru Leads the Charge
Among all cities, Bengaluru emerged as the top performer. Gross leasing in the city grew 25% to 5.3 million sq. ft, while net absorption surged 52% to 4.9 million sq. ft.
The city’s dominance is largely attributed to its strong tech ecosystem, deep talent pool, and growing reputation as a global operations hub. Increasingly, multinational firms are choosing Bengaluru not just for expansion, but for establishing strategic centres of excellence.
Flex Operators Take Centre Stage
Domestic occupiers also played a significant role, leasing 9.2 million sq. ft during the quarter—a 5% increase year-on-year. Notably, flexible workspace operators accounted for a dominant 57.8% share of domestic leasing activity.
This trend reflects a structural shift in how companies consume office space. Flexible workspaces are no longer seen as temporary solutions but as core components of enterprise real estate strategies.
Industry leaders echo this sentiment. Arun Narayan, Co-Founder of BHIVE Workspace, said, “The rise in office leasing is not a one-time spike; the demand is here to stay.” He added that global firms are increasingly positioning Bengaluru as their operational nerve centre.
Similarly, Manas Mehrotra of 315Work Avenue highlighted that “flexible space is now the core of business strategy.”
Evolving Workplace Strategies
The data also reflects a broader transformation in workplace design and strategy. Companies are focusing on high-quality, well-designed office environments that support collaboration, innovation, and employee experience.
As Mehrotra noted, “investing in high-quality, well-designed office spaces has emerged as a strategic imperative.” This aligns with the growing demand for dynamic, future-ready workplaces that can adapt to hybrid work models.
Sustained Growth Ahead
India’s office market is entering a phase of structural growth, driven by GCC expansion, flexible workspace adoption, and strong domestic demand. While global uncertainties remain, the fundamentals of the Indian market continue to attract both occupiers and investors.
With flex operators gaining prominence and cities like Bengaluru driving demand, the sector is well-positioned to sustain its momentum. The current trajectory suggests that India is not just participating in global office trends—it is actively shaping the future of workspaces.
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