Transactions for large office spaces of 1 lakh square feet and above were prominent in India’s commercial office market in Q1 2026, accounting for 65% of total leasing activity in eight major cities. According to a report by Knight Frank India, the leasing of large office spaces grew by 3% year-on-year to 19.5 million sq ft from a base of 19 million sq ft in Q1 2025.
Bengaluru led in large-space office transactions, leasing 7 million square feet in Q1 2026, which constituted 77% of the city’s total office transactions of 9.2 million square feet. Hyderabad followed as the second-highest with 4.4 million sq ft in the large office category, marking a 69% increase from the previous year, while Mumbai recorded 2.9 million square feet, showing an 81% rise.
Viral Desai, International Partner at Knight Frank India, highlighted the strong demand in India’s office market from large occupiers, especially Global Capability Centres (GCCs), technology firms, and multinational corporations expanding their operations in the country. He noted that Hyderabad and Mumbai are experiencing accelerated growth due to increasing corporate occupier activity and the demand for high-quality office infrastructure.
The sustained momentum in large office leasing reflects occupier confidence in India’s long-term growth story and its status as a global business hub. Mid-segment office leasing for spaces between 50,000 sq ft and 1 lakh sq ft reached 5.2 million square feet in Q1 2026, up by 27% from Q1 2025. Bengaluru saw the highest transaction volumes in this segment at 1.5 million square feet, followed by Hyderabad and Mumbai at around 1 million square feet each.
Leasing of smaller office spaces below 50,000 sq ft also saw an increase to 5.2 million square feet, up by 4% from Q1 2025, with Mumbai leading in that segment.
