India’s commercial office market continued to be dominated by large-sized transactions in the January-March quarter of 2026, with office spaces exceeding 100,000 sq ft accounting for nearly two-thirds of total leasing activity across the country’s top eight cities, according to property consultant Knight Frank India.

Large office transactions touched 19.5 million square feet (mn sq ft) in Q1 2026, marking a 3% year-on-year increase from 19 mn sq ft in the corresponding period last year. The segment contributed 65% of the overall office leasing volume of 29.9 mn sq ft during the quarter.

Bengaluru cements dominance in large-office leasing

Bengaluru retained its position as India’s largest office leasing market for large-format workspaces, recording 7 mn sq ft of transactions in the above-100,000 sq ft category. Such deals made up 77% of the city’s total office leasing volume of 9.2 mn sq ft during the quarter.

Hyderabad emerged as the second-largest market in the category with 4.4 mn sq ft of leasing activity, while Mumbai followed with 2.9 mn sq ft of transactions. NCR recorded 2.7 mn sq ft of large office leasing, while Pune saw 1.8 mn sq ft of such deals during the quarter.

Hyderabad, Mumbai post sharp growth in jumbo office transactions

Among the major office markets, Hyderabad and Mumbai recorded the sharpest growth in large office transactions during the quarter. Hyderabad registered a 69% year-on-year jump from 2.6 mn sq ft in Q1 2025, while Mumbai saw an 81% rise over the year-ago period, reflecting robust demand from corporates for premium office assets.

“The office market continues to witness strong demand from large occupiers, particularly from Global Capability Centres (GCCs), technology firms and multinational corporations expanding their operations in India,” said Viral Desai, International Partner and Senior Executive Director at Knight Frank India.

“While Bengaluru remains the dominant market for large office transactions, cities such as Hyderabad and Mumbai are witnessing accelerated growth driven by expanding corporate occupier activity and demand for high-quality office infrastructure,” he added.

The report indicates that occupier preference for larger campuses and consolidated workspaces continues despite evolving hybrid work trends, underscoring long-term confidence in India’s office market.

Mid-sized and small office segments maintain steady traction

Mid-sized office leasing — defined as spaces between 50,000 sq ft and 100,000 sq ft — also posted healthy growth during the quarter. Transactions in this segment rose 27% year-on-year to 5.2 mn sq ft in Q1 2026, contributing 17% to total office leasing volumes. Bengaluru led this category as well with 1.5 mn sq ft, followed by Hyderabad and Mumbai at 1 mn sq ft each.

Meanwhile, leasing of smaller office spaces below 50,000 sq ft stood at 5.2 mn sq ft during the quarter, up 4% year-on-year. Mumbai emerged as the leading market in this category with 1.6 mn sq ft of transactions, accounting for 29% of its total leasing activity, highlighting sustained demand from startups, financial firms and flexible workspace operators.

NCR followed with 0.9 mn sq ft of small office leasing, while Bengaluru and Pune recorded 0.7 mn sq ft each. Knight Frank said the sustained momentum in large office leasing reflects India’s growing stature as a global business and GCC hub, particularly amid continued expansion by multinational firms seeking cost-efficient and talent-rich destinations