India’s office real estate market is set to maintain its strong growth trajectory in 2026, with demand projected at 70–75 million square feet and new supply expected to reach 60–65 million square feet, according to a report by Colliers.
The report underscores a maturing and resilient office market, supported by a diversified occupier base, evolving workplace strategies, and increasing institutional participation. It identifies key structural drivers shaping the next phase of growth, including the rapid expansion of Global Capability Centres (GCCs), rising adoption of flexible workspaces, growing preference for REIT-led ownership, technology-enabled offices, and sustainability-focused developments.
India’s Grade A office stock is projected to approach 900–920 million sq. ft. in 2026 and is expected to surpass the 1 billion sq. ft. milestone by 2030. Over the same period, annual demand could rise to 90–100 million sq. ft., while new supply is likely to reach 75–85 million sq. ft., reflecting long-term market confidence.
The sector has witnessed a steady recovery and expansion since 2021, with demand rising from 33.5 million sq. ft. to 71.5 million sq. ft. in 2025. Vacancy levels are expected to decline further to around 15 per cent in 2026, while rentals are projected to strengthen to `110–115 per sq. ft. per month, indicating sustained occupier interest.
Major office markets such as Bengaluru, Hyderabad, and Delhi-NCR are expected to remain at the forefront of activity. Bengaluru alone is likely to account for nearly one-third of total leasing and supply in 2026, while Hyderabad and Delhi-NCR are each projected to record over 10 million sq. ft. of demand and new supply.
Flexible workspace operators are anticipated to play a significant role, contributing 15–18 million sq. ft. of leasing in 2026, representing a 20–25 per cent share of total demand. At the same time, approximately 80 per cent of leasing activity is expected to be concentrated in green-certified buildings, reflecting the increasing importance of sustainability and ESG considerations.
The report also highlights the growing role of technology in shaping office environments, with PropTech and artificial intelligence expected to be integrated across the asset lifecycle, from design and construction to operations and occupier experience.
Global Capability Centres are projected to remain the primary demand drivers, with leasing volumes expected to reach 30–35 million sq. ft. in 2026, accounting for 40–50 per cent of total office demand. GCCs are increasingly evolving into innovation-led hubs focused on advanced technologies, research and development, and domain-specific expertise.
According to Arpit Mehrotra, Managing Director, Office Services at Colliers India, the market is transitioning into a “future-ready” phase marked by structural growth and institutionalisation. He noted that the expanding footprint of GCCs, combined with the rise of flexible workspaces and broader occupier demand, is expected to sustain strong leasing momentum in the coming years.
Additionally, the report points to a growing preference among GCCs for hybrid real estate strategies, combining headquarters, satellite offices, and flexible workspaces.
