India office market to remain resilient; demand seen at 70–75 million sq. ft in 2026: Colliers

India’s office market is expected to maintain a strong growth trajectory in 2026, with Grade A demand projected at 70–75 million square feet and new supply estimated at 60–65 million square feet, according to a report by Colliers. 

The report, titled ‘2026 India Office: Unlocking Agility, Vitality and Flight-to-Quality', attributes the sustained momentum to a diversified occupier base, evolving workplace strategies, and increasing institutionalisation of the asset class. 

How will GCC expansion drive demand?

It highlights five key structural drivers likely to shape the next phase of growth—accelerated expansion of Global Capability Centers (GCCs), rising adoption of flexible workspaces, a shift towards REIT-led ownership, tech-enabled office environments, and a growing focus on sustainability and climate resilience. 

These trends, coupled with India’s cost and talent advantages, are expected to strengthen its position relative to other Asia-Pacific markets. By 2030, India’s Grade A office stock is projected to surpass the 1 billion sq ft mark. Vacancy levels across major cities are likely to decline amid robust demand while rentals are expected to firm up. 

Most key office markets are projected to witness strong leasing activity and project completions in 2026, at par with or higher than 2025 levels, reflecting sustained occupier confidence despite global uncertainties. 

Which India city is expected to lead the market

Among cities, Bengaluru is expected to lead the market, accounting for nearly one-third of total leasing activity and new supply. Hyderabad and Delhi-NCR are also likely to remain key contributors, each expected to record over 10 million sq. ft of demand and new supply during the year. 

“India’s office market has undergone a steady transition, gaining momentum in recent years. Following the expansionary phase of 2024 and 2025, marked by record demand, the sector is entering a future-ready cycle of structural growth and institutionalisation,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India. 

He added that the expanding footprint of GCCs, growth in flexible spaces, widening talent corridors and a broader occupier base are expected to drive Grade A leasing to 70–75 million sq. ft in 2026, with a potential pathway towards 100 million sq. ft of annual demand in the coming years.