Commercial Real Estate 2026 Outlook: Record Office Leasing Crosses 82 msf in 2025, Strong Momentum Continues
India's office market delivered another record year with gross leasing of 82-83 million sq ft in 2025. Bengaluru, Delhi-NCR, Mumbai, and Hyderabad lead demand driven by GCCs and flex spaces.
3 days ago
India Office Market Hits New Highs in 2025-26
India's commercial real estate sector posted robust performance in 2025 with gross office leasing reaching record levels of approximately 82.6-83.3 million sq ft across major cities (as per CBRE and JLL reports). Supply also touched new peaks with ~58-60 million sq ft added.
City-Wise Performance
Bengaluru: Undisputed leader with ~29% national share and strong GCC demand.
Delhi-NCR: Solid second position with healthy absorption in Gurugram and Noida.
Mumbai & Hyderabad: Both delivered strong numbers with BFSI and tech occupiers.
Other Cities: Pune, Chennai, and emerging Tier-2 markets also contributed significantly.
Key Demand Drivers
Global Capability Centres (GCCs) accounted for a large share of leasing. Flex workspace operators (WeWork, Coworks, etc.) showed highest-ever activity. IT-BPM, BFSI, and manufacturing sectors led demand. Preference for Grade A, ESG-compliant, and well-connected spaces continues.
Rental & Investment Trends
Prime rents remained firm or saw marginal increases in core micro-markets. REITs focused on commercial assets delivered attractive returns. Fractional ownership and other investment platforms lowered entry barriers for retail investors.
2026 Outlook
Analysts expect continued healthy leasing (70-80 msf range) supported by GCC expansion, return-to-office policies, and economic growth. Supply pipeline remains strong, especially in Bengaluru, Hyderabad, and Delhi-NCR.
Investors should focus on sustainable buildings in established business districts for long-term stability and returns.