India’s commercial real estate sector is poised for a strong resurgence, with office space absorption across the country’s top six cities projected to reach 60 – 70 million square feet in 2026, according to industry estimates. This surge reflects renewed business confidence, expanding corporate footprints, and sustained demand from global capability centres (GCCs), IT firms, and emerging startups.
After navigating years of pandemic-led uncertainty, India’s office market has staged a strong comeback, driven by a return to physical workplaces and a hybrid work model that continues to evolve. Major cities such as Bengaluru, Hyderabad, Mumbai, Delhi-NCR, Pune, and Chennai are expected to remain key growth engines, collectively accounting for the majority of leasing activity.
Key Growth Drivers
Experts point to several factors fueling this anticipated rise. The expansion of global capability centres (GCCs) by multinational firms remains the biggest contributor, as companies continue to view India as a strategic hub for technology, R&D, finance, and back-office operations. Additionally, sectors such as IT services, engineering, fintech, and consulting are steadily increasing their office footprints.
Another major driver is the return-to-office trend, which has gained momentum across corporates seeking collaboration, productivity, and cultural alignment. As hybrid work stabilizes, organizations are reassessing space requirements, leading to renewed leasing activity in prime micro-markets.
Supply Pipeline and Infrastructure Push
Developers are also responding to rising demand with an active pipeline of Grade-A office developments. Improved infrastructure, metro connectivity, and the rise of mixed-use commercial hubs have further strengthened India’s attractiveness as a global business destination. Cities like Bengaluru and Hyderabad are expected to see the largest share of new completions, while Mumbai and Delhi-NCR continue to attract premium occupiers seeking high-quality office assets.
Investor Confidence Remains Strong
Institutional investors and real estate funds continue to show confidence in India’s office sector, citing stable rental yields and long-term growth prospects. The influx of foreign capital, especially from global pension funds and sovereign wealth funds, underscores the sector’s resilience and global appeal.
Outlook for 2026
With economic stability, rising foreign investments, and sustained corporate expansion, analysts believe the Indian office market is entering a new growth cycle. The projected 60 – 70 million square feet of absorption in 2026 would mark one of the strongest performances in recent years, reinforcing India’s position as a key global commercial real estate hub.
As businesses adapt to evolving workplace models, India’s office market appears well-positioned to balance flexibility, scale, and long-term growth in the years ahead.
