India’s office market is projected to maintain growth in 2026, with an estimated Grade A demand of 70-75 million square feet and new supply of 60-65 million square feet. Global capability centers (GCCs) are expected to drive 30-35 million square feet of leasing, comprising a significant portion of Grade A office demand.
These GCCs have transitioned from traditional back-offices to innovation-focused, technologically advanced centers, playing a crucial role in sectors like Technology, BFSI, engineering, and manufacturing. Bengaluru is anticipated to lead the Indian office market, accounting for about one-third of leasing activity and supply additions.
Hyderabad and Delhi-NCR are also poised to witness over 10 million square feet of demand and new supply each in 2026, underscoring their significance in the Indian office market. By 2030, India’s Grade A office stock is expected to exceed 1 billion square feet, with decreasing vacancy levels and rising rentals in key cities.
The growth is attributed to the expanding footprint of GCCs, enhanced flex space offerings, evolving talent corridors, and a widening occupier base. Flex space operators are projected to lease 15-18 million square feet in 2026, constituting a substantial portion of overall leasing activity.
Real Estate Investment Trusts (REITs) are anticipated to democratize commercial real estate in India, encouraging retail investor participation. Developers focusing on digital infrastructure and sustainability are likely to attract and retain occupiers effectively in the long run.
