India’s office property market recorded a 20% decline in net leasing during the first nine months of 2026, as limited availability of quality office space and a high comparison base weighed on activity across major cities. According to Cushman & Wakefield, net office leasing across India’s eight largest markets fell to 36.7 million square feet between January and September, compared with 46 million square feet during the same period last year.
Despite the decline in net leasing, overall market activity remained strong, with gross leasing rising 1% to a record 64.6 million square feet.
Net Office Leasing Declines Across Five Major Cities
The report found that net office leasing declined in Mumbai, Delhi-NCR, Pune, Chennai and Kolkata. Bengaluru, Hyderabad and Ahmedabad, however, recorded growth.
Mumbai’s net leasing fell 46% year-on-year to 4.1 million square feet, while Delhi-NCR recorded a 48% decline to 5 million square feet. Chennai also registered a 48% fall to 2.8 million square feet.
Pune experienced a 39% decline, with net office leasing dropping from 6.9 million square feet in January-September 2025 to 4.2 million square feet in the corresponding period of 2026.
Kolkata recorded a comparatively smaller decline of 12%, with net leasing falling to 1.1 million square feet.
Bengaluru and Hyderabad Continue to Attract Businesses
Bengaluru remained India’s largest office market, with net leasing increasing 16% to 11 million square feet from 9.5 million square feet a year earlier.
Hyderabad delivered stronger growth, recording a 41% increase to 7.3 million square feet. Ahmedabad registered the fastest growth among the eight cities, with net leasing rising 81% to 1.2 million square feet.
The figures indicate that businesses are continuing to expand in selected markets even as other cities experience slower net absorption. Availability of suitable office buildings, local talent pools and business expansion plans are among the factors influencing location decisions.
Why Has Net Leasing Fallen?
Cushman & Wakefield attributed the overall decline to limited additions of quality office space during the first half of 2026 and a high base in the previous year.
Net leasing, also referred to as net absorption, measures the net change in occupied office space. It differs from gross leasing, which includes new leases, renewals and pre-leased space.
This distinction helps explain why net leasing can fall even when overall leasing activity remains healthy. Companies may continue signing or renewing office agreements while the amount of additional occupied space grows more slowly.
Global Capability Centres Support Demand
Global Capability Centres (GCCs), established by multinational companies to undertake technology, research, finance and other business functions, remain an important source of office demand in India.
The country’s skilled workforce and cost competitiveness continue to attract international businesses. Industry executives also reported increased interest in pre-commitments, allowing companies to secure office space before buildings are completed.
Additional office supply completed during the September quarter could help accommodate some of this demand in the coming months.
What the Numbers Mean for India’s Office Market
The decline in net leasing does not necessarily signal a broad collapse in demand. Record gross leasing suggests companies remain active in the market, although the pace at which they add occupied space has moderated.
Future performance will depend on new office supply, corporate expansion plans and the ability of developers to deliver quality workspaces in locations preferred by businesses.
Summary
India’s net office leasing declined 20% to 36.7 million square feet during January-September 2026 across eight major cities, according to Cushman & Wakefield. Pune, Mumbai, Delhi-NCR and Chennai recorded significant falls, while Bengaluru, Hyderabad and Ahmedabad reported growth. Gross leasing rose 1% to a record 64.6 million square feet, highlighting continued market activity despite supply constraints and slower net absorption.
