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

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 seven office markets recorded 9% annual growth in gross leasing during Q3 2026, reaching 18.7 million sq ft. Bengaluru, Delhi-NCR, Hyderabad and Kolkata expanded, while Mumbai, Pune and Chennai declined. GCCs, technology, BFSI and flexible workspace operators remained major demand drivers, supporting a strong outlook for 2026.
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Bengaluru remained India’s leading office market in H1 2026, recording 14.1 million sq. ft. of office transactions, with GCCs leading the activity. Rising demand from AI and semiconductor firms, growing adoption of flexible workspaces, and a strong residential market underscore the city’s expanding role as India’s commercial and innovation hub.
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Bengaluru topped India’s office leasing in Q1 2026 with a 24.8% share and 5.3 million sq ft leased, driven by strong GCC demand. Major deals by Enzyme, Morgan Stanley, Airbus, Brigade Group, and Honeywell highlight rising demand for flexible, large-format, and enterprise-grade office spaces across key micro-markets.
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Bengaluru is witnessing a surge in demand for AI-driven offices as global firms like Anthropic and OpenAI expand operations. GCC leasing, flexible workspaces, and premium assets are seeing strong traction, with the city accounting for 48% of GCC activity in Q1 2026, reinforcing its position as a global innovation hub.
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Bengaluru achieved a record 24.1 million sq ft of office leasing in 2025, led by tech firms, GCC expansions, and flexible workspace operators. Despite 12 million sq ft of new supply, vacancy fell to 10.5%. Rents rose 6.6%, and capital values climbed 8.6%, reflecting strong occupier and investor confidence.
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