Top 7 Indian Cities Record 9% Rise in Office Leasing During Jul-Sep: Colliers

India’s commercial office market continued its upward run in the July-September quarter, with gross office leasing across seven major cities rising 9% year-on-year to 18.7 million sq ft, up from 17.2 million sq ft in the same period last year, according to Colliers India.

The growth reflects continued expansion by corporates, Global Capability Centres (GCCs) and flexible workspace operators. Bengaluru, Delhi-NCR, Hyderabad and Kolkata recorded year-on-year increases, while leasing activity softened in Mumbai, Pune and Chennai. Gross absorption figures exclude lease renewals, pre-commitments and transactions where only a Letter of Intent has been signed.

Bengaluru, Delhi-NCR Lead the Market

Bengaluru remained a key engine of office demand, with leasing rising 11% to 5.2 million sq ft from 4.7 million sq ft a year earlier. Delhi-NCR recorded an even sharper increase, with transactions more than doubling to 3.3 million sq ft from 1.6 million sq ft.

Hyderabad also posted strong growth, with leasing increasing 47% to 2.2 million sq ft. Kolkata recorded a four-fold rise, although from a smaller base, reaching 0.4 million sq ft compared with 0.1 million sq ft in Q3 2025.

In contrast, Mumbai’s leasing fell by 20% to 2.4 million sq ft, while Pune’s declined by 14% to 3.2 million sq ft. Chennai recorded a 23% drop to 2 million sq ft.

Flexible Workspaces Strengthen Their Role

The flexible office segment continues to gain importance as companies seek agility, faster expansion and lower upfront costs. Of the 54.4 million sq ft leased across the seven cities during January-September, 23% was taken by coworking and managed office operators.

Technology and BFSI companies remained major sources of demand, while foreign enterprises continued to expand their GCC footprints. Manas Mehrotra, Founder of 315Work Avenue, said enterprises are seeking “greater agility and efficiency,” making flexible and managed office solutions increasingly important to workplace planning.

James Thomas, Founder of SpazeOne, said GCC expansion is accelerating demand for premium managed offices that provide “flexibility, quality infrastructure and operational efficiency.”

Stronger Finish Expected for 2026

Across the first nine months of 2026, gross office leasing reached 54.4 million sq ft, up 7% from 50.9 million sq ft during the corresponding period last year. The figure points to sustained occupier activity despite uneven performance across individual markets.

Colliers expects the final quarter to add further momentum. Arpit Mehrotra, Managing Director, Office Services, Colliers India, said, “We are well poised for a stronger 2026,” with the potential for 75-80 million sq ft of transactions across the major office markets.

For flexible workspace providers, the opportunity is closely linked to GCC-led expansion. Aashit Verma, Founder of Hanto Workspace, noted that flex offices can turn a traditionally complex office setup into a ready-to-operate workplace that can be deployed and scaled within “60-90 days.” He added that GCCs accounted for 44% of flex seat leasing in H1 2026, highlighting the segment’s growing role in India’s office market.