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Real Estate

India Office Market 2026: Completions Fall to 9.7 Mn Sq Ft While Demand Remains Strong

  • by- Zaid
  • Apr 21, 2026
New completions declined sharply by 36% quarter-on-quarter to 9.7 million sq ft in Q1 2026—the lowest level recorded in the past four quarters. Despite this, office absorption increased by 20% to 21.53 million sq ft compared to the same period last year.
India Office Market 2026: Completions Fall to 9.7 Mn Sq Ft While Demand Remains Strong

New Delhi, April 21: Bengaluru, Hyderabad, and Mumbai contributed significantly to the decline as developers adopted a cautious stance amid prevailing uncertainties.

Key Highlights

  • Pan-India vacancy: Improved to 9.5% (from 10.8% in previous quarter)

  • Market trend: Shift towards landlord-driven market, particularly in prime and emerging business districts

City-Wise Absorption

  • Bengaluru: 4.91 mn sq ft (up 20% YoY)

  • Pune: 3.92 mn sq ft (up 47% YoY) – highest-ever quarterly absorption

  • Hyderabad: 3.90 mn sq ft (up 47% YoY)

  • Mumbai: 3.71 mn sq ft (down 7% YoY)

  • NCR: 3.06 mn sq ft (up 12% YoY)

  • Chennai: 1.81 mn sq ft (up 13% YoY)

  • Kolkata: 0.22 mn sq ft (down 4% YoY)

City-Wise New Completions

  • Bengaluru: 4.20 mn sq ft (up 20% YoY)

  • Chennai: 1.50 mn sq ft (up 1,400% YoY – low base effect)

  • NCR: 1.40 mn sq ft (up 75% QoQ)

  • Mumbai: 1.20 mn sq ft (up 300% YoY)

  • Pune: 1.10 mn sq ft (down 62% YoY)

  • Hyderabad: 0.30 mn sq ft (down 95% QoQ)

Rental Trends

  • Mumbai: Most expensive office market (₹152.6/sq ft/month)

  • Hyderabad: Highest rental growth (5.3% YoY) driven by robust GCC demand

Expert View

Shrinivas Rao, FRICS, CEO of Vestian, said: "India's office market exhibited resilience in the first quarter of 2026, despite global geopolitical challenges. The sustained leasing, particularly driven by GCCs, highlights India's growing prominence as a strategic hub for global corporations. While supply chain constraints led to a temporary slowdown in new completions, robust absorption has tightened vacancies and driven rental appreciation."