Office leasing rises 15Percent to 18.3 million sq ft across seven cities in Q1 2026: Across Major Cities

Author: Ajjay Bhagyakar | Published by: Griha Realty

Source: Industry Reports / Colliers India

Created By: Ajjay Bhagyakar With Ai

The office leasing market in India has shown a strong start to 2026, with a notable increase in demand across major cities. According to a recent report by Colliers, office leasing rose by 15 percent in the first quarter, reaching 18.3 million square feet across seven key cities. This growth signals renewed confidence among businesses and a positive outlook for commercial real estate in the country.

Key cities driving office leasing growth

The seven cities contributing to this surge include Bangalore, Mumbai, Delhi NCR, Pune, Hyderabad, Chennai, and Kolkata. Each city has its own unique factors fueling demand:

• Bangalore remains the top destination for office space, driven by its strong IT and tech sectors. Leasing activity here accounted for a significant portion of the total 18.3 million sq ft.

• Mumbai saw increased interest from financial services and startups, pushing leasing volumes higher.

• Delhi NCR benefited from expansion by multinational companies and government-related projects.

• Pune and Hyderabad attracted companies looking for cost-effective office locations with good infrastructure.

• Chennai and Kolkata showed steady growth as emerging hubs for manufacturing and IT services.

  
  

This geographic spread highlights how diverse industries across India are expanding their office footprints.

Factors behind the leasing increase

Several factors contributed to the 15 percent rise in office leasing:

• Economic recovery: As the economy rebounds, companies are investing more in physical office spaces to support hybrid and in-person work models.

• Flexible office solutions: Demand for flexible leases and coworking spaces has grown, allowing businesses to scale up quickly.

• Infrastructure improvements: Enhanced connectivity and new commercial developments in these cities make office locations more attractive.

• Sectoral growth: IT, financial services, and startups are leading the demand, reflecting their expanding workforce needs.

  
  

These elements combined to create a favorable environment for office leasing in Q1 2026.

What this means for businesses and investors

The rise in office leasing indicates that companies are confident about future growth and are committing to longer-term office space. For businesses, this means more options and competitive pricing as developers respond to demand. Investors can view this trend as a sign of a healthy commercial real estate market with potential for steady return, Office leasing rises 15Percent to 18 3 million sq ft across seven cities in Q1 2026 Across Major Cities

Companies planning to expand or relocate should consider:

• Evaluating emerging office hubs like Pune and Hyderabad for cost advantages.

• Exploring flexible office formats to maintain agility.

• Monitoring infrastructure projects that improve accessibility.

  
  

Outlook for the rest of 2026 Office leasing rises 15Percent to 18.3 million sq ft across seven cities in Q1 2026: Across Major Cities

If the current trend continues, office leasing could surpass 70 million square feet by the end of the year across these cities. This would mark a significant rebound from previous years affected by the pandemic. However, market dynamics such as interest rates, economic policies, and remote work adoption will influence the pace of growth.

Businesses and investors should stay informed about local market conditions and emerging opportunities to make strategic decisions.