Net office leasing across India's eight major cities declined 20% year-on-year to 36.7 million sq ft during January-September 2026, compared with 46 million sq ft in the corresponding period last year, as limited availability of quality office space constrained occupier options, according to Cushman & Wakefield.
Despite the decline in net absorption, the overall office market remained active. Gross leasing rose 1% to 64.6 million sq ft, the highest-ever level recorded for the first nine months of a year. Gross leasing includes fresh absorption, renewals and pre-leasing activity, providing a broader measure of occupier demand.
Net leasing declined across five of the eight cities tracked by the consultant, including Mumbai, Delhi-NCR, Pune, Chennai and Kolkata. Bengaluru, Hyderabad and Ahmedabad recorded growth.
Mumbai reported a 46% decline in net leasing, with absorption falling to 4.1 million sq ft in January-September 2026 from 7.6 million sq ft a year earlier. Delhi-NCR saw a sharper 48% drop to 5 million sq ft, compared with 9.6 million sq ft in the year-ago period.
Chennai's net office leasing also fell 48% to 2.8 million sq ft from 5.4 million sq ft, while Pune recorded a 39% decline to 4.2 million sq ft from 6.9 million sq ft.
Kolkata was relatively less affected, with net leasing declining 12% to 1.1 million sq ft from 1.2 million sq ft.
In contrast, Bengaluru, India's largest office market, recorded a 16% increase in net leasing to 11 million sq ft, compared with 9.5 million sq ft in the same period last year.
Hyderabad recorded an even stronger increase, with net leasing rising 41% to 7.3 million sq ft from 5.2 million sq ft. Ahmedabad saw the sharpest growth among the eight markets, with net leasing surging 81% to 1.2 million sq ft from 0.7 million sq ft.
Cushman & Wakefield said the moderation in net absorption was partly due to a strong 2025 base and limited additions of new office space during the first half of 2026. The supply constraint restricted occupier choices in several markets despite continued demand.
Net absorption during the third quarter stood at 14.1 million sq ft, taking the nine-month total to 36.7 million sq ft.
Veera Babu, Executive Managing Director, Tenant Representation-India, Cushman & Wakefield, said office demand remains healthy, with the increase in completions during the September quarter expected to provide additional capacity for future expansion.
The consultant also observed a shift in occupier planning, with pre-commitments gaining traction and companies considering locations beyond established office hubs.
Anshul Jain, Chief Executive, India, SEA, MEA & APAC Office and Retail, Cushman & Wakefield, said the market continues to demonstrate resilience despite macroeconomic and geopolitical uncertainty.
He attributed much of the sustained demand to global capability centres (GCCs), with India's large talent pool and cost competitiveness continuing to attract multinational companies seeking to establish or expand their GCC operations.
The contrast between net and gross leasing highlights the underlying strength of India's office market. While net absorption was affected by supply constraints and a high comparison base, the record 64.6 million sq ft of gross leasing indicates that occupier activity remained strong during the first nine months of 2026.
