{"id":3935,"date":"2026-07-25T13:32:00","date_gmt":"2026-07-25T08:02:00","guid":{"rendered":"https:\/\/www.crematrix.com\/blog\/?p=3935"},"modified":"2026-07-30T13:52:38","modified_gmt":"2026-07-30T08:22:38","slug":"india-office-market-q1-cy26-key-trends-and-city-wise-performance","status":"publish","type":"post","link":"https:\/\/www.crematrix.com\/blog\/india-office-market-q1-cy26-key-trends-and-city-wise-performance\/","title":{"rendered":"India Office Market Q1 CY’26: Key Trends and City-wise Performance"},"content":{"rendered":"\n

India’s Grade A office market continued its positive momentum in Q1 CY’26, supported by strong occupier demand and improving market fundamentals. According to the India Office Market Q1 CY’26<\/a> Report by CRE Matrix and CREDAI, businesses remained focused on leasing high-quality office spaces across major commercial cities, while developers continued to add new Grade A supply to meet growing demand.<\/p>\n\n\n\n

India Office Market Overview<\/strong><\/p>\n\n\n\n

The Indian office market recorded 21.2 million sq. ft. of gross leasing during Q1 CY’26, while fresh Grade A office completions stood at 11.3 million sq. ft.. With demand continuing to outpace supply, the market achieved a healthy 1.9x demand-to-supply ratio, reflecting sustained confidence among occupiers across the country’s leading business hubs.<\/p>\n\n\n\n

The quarter also witnessed improving market fundamentals, with vacancy declining to 15.0% and market rent reaching \u20b9111.2 per sq. ft. per month. Bengaluru and Mumbai emerged as the leading contributors to office leasing, while GCCs, IT\/ITeS, Co-Working, and BFSI occupiers continued to drive demand across India’s Grade A office market.<\/p>\n\n\n\n

Top Cities Performing<\/strong><\/h2>\n\n\n\n

Bengaluru<\/strong><\/h3>\n\n\n\n

Bengaluru remained India’s largest office market in Q1 CY’26, accounting for 24% of the country’s total Grade A office leasing. The city recorded 5.1 million sq. ft. of gross leasing, while 2.9 million sq. ft. of new office supply was completed during the quarter. Vacancy stood at 11.4%, reflecting healthy demand despite continuous supply additions. The city also reported a market rent of \u20b9132.6 per sq. ft. per month, supported by sustained occupier activity.<\/p>\n\n\n\n

Delhi NCR<\/strong><\/h3>\n\n\n\n

Delhi NCR continued to witness steady office demand, with 2.6 million sq. ft. of gross leasing recorded in Q1 CY’26. The region added 2.0 million sq. ft. of new Grade A office supply, while vacancy remained stable at 16.2%. Market rent stood at \u20b9102.9 per sq. ft. per month, supported by leasing activity across established business districts. IT\/ITeS, BFSI, and flexible workspace operators remained among the key occupier segments during the quarter.<\/p>\n\n\n\n

Mumbai<\/strong><\/h3>\n\n\n\n

Mumbai recorded 4.5 million sq. ft. of Grade A office leasing during Q1 CY’26, making it one of the strongest-performing office markets in India. The city added 1.5 million sq. ft. of new supply during the quarter, while vacancy stood at 13.6%. Market rent remained among the highest in the country at \u20b9170.8 per sq. ft. per month, reflecting sustained demand for premium office assets across key commercial locations.<\/p>\n\n\n\n

Hyderabad<\/strong><\/h3>\n\n\n\n

Hyderabad leased 2.8 million sq. ft. of Grade A office space in Q1 CY’26 and delivered 1.7 million sq. ft. of fresh office supply. The city reported the highest vacancy among major office markets at 24.2%, while market rent reached \u20b976.8 per sq. ft. per month. Hyderabad continued to attract occupiers through its large Grade A inventory and active commercial development pipeline.<\/p>\n\n\n\n

Pune<\/strong><\/h3>\n\n\n\n

Pune remained an active office market with 2.2 million sq. ft. of leasing recorded during the quarter. The city added 2.3 million sq. ft. of new office supply, accounting for a significant share of India’s fresh completions. Vacancy stood at 15.5%, while market rent reached \u20b990.2 per sq. ft. per month, supported by continued demand from major occupier sectors.<\/p>\n\n\n\n

Chennai<\/strong><\/h3>\n\n\n\n

Chennai registered 1.7 million sq. ft. of gross office leasing in Q1 CY’26, supported by 0.8 million sq. ft. of new Grade A office supply. Vacancy remained relatively low at 11.3%, while market rent stood at \u20b983.3 per sq. ft. per month. The city continued to witness steady occupier interest across established office corridors during the quarter.<\/p>\n\n\n\n

Ahmedabad<\/strong><\/h3>\n\n\n\n

Ahmedabad continued to strengthen its presence in India’s office market during Q1 CY’26. The city recorded stable leasing activity with ongoing Grade A office developments supporting future growth. Commercial activity remained concentrated in key business districts, while upcoming supply is expected to expand the city’s quality office stock over the coming years.<\/p>\n\n\n\n

Office Rents Continue Their Upward Trend<\/strong><\/h2>\n\n\n\n

Office rentals remained firm across India’s major commercial markets. Market rent increased to \u20b9111.2 per sq. ft. per month, representing a 24.5% increase over the last ten quarters.<\/p>\n\n\n\n

Passing rents also remained stable throughout the period, indicating that landlords have not been required to offer significant rental concessions. Rising rents alongside falling vacancy underline the strength of India’s Grade A office market fundamentals.<\/p>\n\n\n\n

GCCs and Flexible Workspaces Drive Leasing Activity<\/strong><\/h2>\n\n\n\n

Global Capability Centers (GCCs) continued to remain one of the largest occupier groups in India’s office market during Q1 CY’26. Bengaluru accounted for 39% of the GCC footprint, followed by Hyderabad at 23%.<\/p>\n\n\n\n

Among industry sectors, IT\/ITeS contributed 27% of leasing demand, followed by Co-Working at 21% and BFSI at 18%. Flexible workspace operators also emerged as one of the strongest leasing drivers across several cities, highlighting the continued shift toward hybrid
<\/p>\n\n\n\n

India’s Office Market Maintains Strong Momentum<\/strong><\/h2>\n\n\n\n

India’s Grade A office market entered CY’26 on a strong note, supported by healthy leasing demand, improving occupancy levels, and steady rental growth. With demand continuing to outpace supply and occupier confidence remaining strong across major commercial hubs, the office sector remains resilient. The performance of cities such as Bengaluru, Mumbai, Delhi NCR, Hyderabad, Pune, Chennai, and Ahmedabad highlights the broad-based strength of India’s commercial real estate market in Q1 CY’26.<\/p>\n\n\n\n

Elevate your decisions in real estate as a developer or broker with CRE Matrix\u2019s data-driven insights.\u00a0Book a demo now<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

India’s Grade A office market continued its positive momentum in Q1 CY’26, supported by strong occupier demand and improving market fundamentals. According to the India Office Market Q1 CY’26 Report…<\/p>\n","protected":false},"author":1,"featured_media":3936,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10,150,185],"tags":[5,6,7,4,81],"yoast_head":"\nIndia Office Market Report Q1 CY'26: Office Leasing & Rental Trends<\/title>\n<meta name=\"description\" content=\"Explore the India Office Market Q1 CY'26 Report by CRE Matrix. 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