Mumbai, October 10 (IANS). Demand for office space in India's top eight cities has increased by 26 per cent quarter-on-quarter to 14.1 million square feet in the July-September period (Q3 2026). This information was given in a report released on Saturday.
Cushman & Wakefield's report said that this growth rate has been possible due to good demand from occupiers of office space in this quarter and strong growth in completion of new offices.
However, the total net demand has seen a decline of 18 percent on an annual basis. The reason for this is believed to be the high base of the third quarter of 2025.
The total demand in Hyderabad during Q3 2026 stood at 4.1 million square feet and its share at the national level was about 29 percent. Whereas, Bengaluru was at second place with 4 million square feet.
There is demand for 36.7 million square feet of office space from the beginning of 2026 in the top eight cities of the country. During this period, the gross leasing volume (GLV) has been around 22 million square feet. There has been an increase of 3 percent on quarterly basis.
Global Capability Centers (GCCs) are playing a key role in increasing the demand for office space. They took up 9.1 million square feet of space in Q3 2026, which was 42 percent of the total quarterly leasing volume (GLV). GCC presence was particularly high in Bengaluru and Pune, with the sector accounting for around 65 per cent of the leasing activity in both these markets.
From the sector perspective, BFSI emerged as the most in-demand sector in the third quarter of 2026, accounting for 24 percent of the total leasing activities. This was followed by IT-BPM, whose share was 22 percent.
Anshul Jain, Chief Executive, India, SEA, MEA and APAC Offices and Retail, Cushman & Wakefield, said, “GCC has been a key driver of this growth as global companies continue to expand their presence and capabilities in India. The reasons behind this demand are the large pool of skilled people, India's competitiveness in terms of costs and India's growing importance in global business strategies.”
“As companies take a longer-term view of their portfolios, we expect continued growth in India's office market,” he said.
–IANS
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