India’s office space market saw strong momentum in Q1 2026, with large deals of around 1 lakh sq ft emerging as the main growth driver. Companies are increasingly shifting from small, scattered office setups to larger, integrated spaces that support long-term expansion, better collaboration, and operational efficiency.
According to Knight Frank India, office leases of 1 lakh sq ft and above accounted for nearly 65% of total leasing activity across major Indian cities. Overall leasing for such large spaces reached around 19.5 million sq ft, showing strong corporate confidence in India’s commercial real estate sector.
Bengaluru remained the clear leader in this segment, driven by its strong IT ecosystem, global capability centres, and startup presence. The city continues to attract large-scale occupiers looking for high-quality office infrastructure and talent access.
Other cities also contributed significantly to this growth story. Hyderabad showed strong year-on-year expansion due to its growing tech parks and multinational companies. Mumbai witnessed a healthy rebound led by BFSI and corporate demand. NCR remained stable with steady leasing activity from headquarters and consulting firms, while Pune and Chennai continued to grow steadily. Smaller markets like Kolkata and Ahmedabad also recorded gradual but consistent demand.
City-wise large office leasing (Q1 2026)
| City | Large Office Leasing (MSF) | Trend | Key Drivers |
| Bengaluru | 7.0 | Leading market | IT sector, GCC expansion, startups |
| Hyderabad | 4.4 | Strong growth | Technology parks, MNC expansion |
| NCR | 4.0 | Stable demand | Corporate HQs, consulting firms |
| Pune | 3.1 | Growing | IT services, manufacturing |
| Mumbai | 2.9 | Strong recovery | BFSI sector, corporates |
| Chennai | 1.5 | Moderate growth | Industrial + IT demand |
| Kolkata | 0.4 | Emerging | Early-stage office demand |
| Ahmedabad | 0.3 | Developing | New commercial uptake |
What is most interesting in this trend is the shift in corporate thinking. Offices are no longer seen just as cost centers. They are becoming experience-driven spaces where collaboration, innovation, and company culture come together. Even in a hybrid work environment, companies are not shrinking their office presence. Instead, they are upgrading to larger and better-quality spaces.
Overall, the 19.5 MSF leasing activity reflects strong and steady confidence in India’s office market. The rise of large deals shows that businesses are planning for growth, stability, and long-term value rather than short-term needs.
Source – Hindustan Times
