India office net absorption falls 18% to 14.1 million sq ft in Q3 2026, Cushman & Wakefield report
Net office absorption across India's top eight cities declined 18% year-on-year to 14.1 million sq ft in Q3 2026, according to Cushman & Wakefield. Hyderabad and Bengaluru accounted for nearly 58% of quarterly absorption, while gross leasing volume hit a 2026 high of approximately 22 million sq ft.
Net office absorption across India's top eight cities declined 18 per cent year-on-year to 14.1 million sq ft in Q3 2026, according to a report by Cushman & Wakefield. The decline came against a high base in Q3 2025, which had recorded the highest quarterly absorption of that year. Year-to-date net absorption stood at 36.7 million sq ft.
Hyderabad led quarterly absorption with 4.1 million sq ft, accounting for 29 per cent of the pan-India total, followed by Bengaluru with 4.02 million sq ft, or 28.6 per cent. Gross leasing volume across the top eight cities stood at approximately 22 million sq ft in Q3 2026, the highest for 2026 to date. Bengaluru led leasing activity with 5.2 million sq ft, followed by Hyderabad at 4.2 million sq ft, Mumbai at 3.9 million sq ft and Delhi-NCR at 3.8 million sq ft.
During January to September 2026, gross leasing reached 64.6 million sq ft, the highest volume recorded for the first nine months of any year. Fresh leasing accounted for around 75 per cent of year-to-date activity, while pre-commitments contributed about 12 per cent.
Global capability centres (GCCs) leased 9.1 million sq ft during Q3, accounting for 42 per cent of total leasing activity. For the first nine months of 2026, GCC leasing stood at 25.3 million sq ft, representing 39 per cent of overall leasing. The IT and BFSI sectors were the predominant drivers of GCC demand.
New office completions reached an all-time quarterly high of 22.7 million sq ft in Q3 2026. Year-to-date office supply stood at 43.3 million sq ft, equivalent to 82 per cent of the total supply added during 2025. Pan-India vacancy stood at 14.37 per cent, while average office rents increased across major markets.
