India's office space absorption surges 8 pc to record 66.4 million sq ft in Jan–Sep: Report

New Delhi: India's office sector recorded absorption of nearly 66.4 million sq. ft. in the January–September 2026 period, an 8 per cent increase year-on-year which is a record high for any nine-month period, a report said on Thursday.

The report from CBRE South Asia said the total absorption during the July–September quarter (Q3) stood at nearly 21 million sq. ft., up 6 per cent on an annual basis.

New supply during the period also reached nearly 51 million sq. ft., up 18 per cent YoY marking an all-time high for any nine-month period.

Development completions in Q3 2026 totalled nearly 19 million sq. ft., up 26 per cent YoY, led by Hyderabad, Bengaluru and Pune. These three cities collectively accounted for nearly 89 per cent of quarterly completions, the report said.

“Flex operators, BFSI and technology occupiers are all expanding simultaneously, while occupiers across the board continue to gravitate towards higher-quality buildings. That breadth of demand is what gives this cycle its durability," said Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE.

Global Capability Centres leased nearly 8.7 million sq. ft. during the quarter, taking nine-month GCC absorption to a record 28 million sq. ft. accounting for 42 per cent of overall leasing.

GCC space take-up volumes rose 16 per cent YoY over the nine months, and quarterly take-up was led by Hyderabad accounting for 37 per cent share and Bengaluru (28 per cent), the report noted. Within BFSI, GCCs accounted for a 76 per cent share of leasing during the quarter.

"Three-fourths of the space taken up this quarter was in buildings under ten years old, and flex has become the largest demand driver. The core plus flex model has moved from an experiment to a strategic portfolio decision," said Ram Chandnani, Managing Director, Leasing Services, CBRE India.

Over half of the new supply added in Q3 and 9M 2026 came from premium Grade A+ assets, the report noted.

India's office sector is firmly positioned for another strong year as the momentum is underpinned by healthy occupier enquiries and subsequent deal closures as global and domestic enterprises continue to expand their portfolios, the report forecasted.

Nearly 77 per cent of occupiers expect to expand their India office portfolios over the next two years. Steady economic growth and the country’s deep talent base are expected to sustain occupier activity despite a cautious global macroeconomic backdrop, reinforcing its appeal for corporate expansion.

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