Office vacancy rates in India’s major cities averaged 13.85% in the first quarter of 2026, falling below the 14% mark for the first time since the pandemic. This decline was driven by sustained occupier demand and a decrease in new supply, according to a report by Cushman & Wakefield.
The report highlighted that vacancy decreased by approximately 48 basis points quarter-on-quarter and around 191 basis points year-on-year during Q1 2026. This period also marked the eleventh consecutive quarter of compression in office vacancy rates.
New completions in the top eight cities totaled 8.8 million square feet, showing a 43% decrease quarter-on-quarter and an 18% decrease year-on-year. The slowdown was mainly due to project completion delays, as stated in the report.
Bengaluru, Delhi NCR, and Chennai accounted for the majority of new supply, with Pune, Hyderabad, and Kolkata recording no completions. This led to a faster absorption of available vacant stock in various established office locations across these cities.
Net absorption in Q1 2026 was reported at 11.51 million square feet, reflecting a 28% quarter-on-quarter and 24% year-on-year decline. The moderation was attributed to softer fresh leasing following a strong finish to 2025, coupled with slower supply completions during the quarter.
“Gross leasing volume reached around 22 million square feet in Q1 2026, marking a 13% increase from the same period last year, indicating robust demand across sectors,” said Anshul Jain, Chief Executive of India, SEA, MEA & APAC Office and Retail at Cushman & Wakefield.
