Mumbai, Oct. 29 -- India's office market recorded its strongest nine-month performance on record, with gross leasing reaching 61.06 mn sq. ft between January and September 2026, according to JLL. The July-September quarter contributed 23.17 mn sq. ft, making it the strongest quarter of the year after a mid-year slowdown. The recovery reflected the closure of deals held back during Q2 and renewed expansion by occupiers.

Global Capability Centres (GCCs) remained the main structural driver of demand, leasing 26.2 mn sq. ft during 9M 2026. This represented a 30.6 per cent year-on-year increase and 42.9 per cent of total office leasing. The volume was equivalent to 84 per cent of the space leased by GCCs during the whole of 2025, which was a record year for the segment.

Foreign-headquartered organisations accounted for 57.8 per cent of leasing during the first nine months, while foreign occupiers represented 62 per cent of Q3 activity, their highest share in seven quarters. Bengaluru led demand from global firms, accounting for 41.6 per cent of foreign-occupier leasing during the quarter. It remained the largest overall market, contributing 33.4 per cent of Q3 leasing and 28 per cent during the nine-month period.

Bengaluru recorded 17.11 mn sq. ft of leasing in 9M 2026, followed by Hyderabad at 9.93 mn sq. ft. Hyderabad posted 32 per cent year-on-year growth, while Mumbai and Pune increased 17.7 per cent and 31.6 per cent, respectively. Technology contributed 25.6 per cent of Q3 leasing, closely followed by banking, financial services and insurance at 25.3 per cent. Manufacturing and industrial occupiers accounted for 16.1 per cent, while flex operators contributed 15.5 per cent.

Net absorption reached a record 41.96 mn sq. ft, up 5.3 per cent year-on-year, with Bengaluru, Hyderabad, Delhi NCR and Pune accounting for the largest shares. New supply totalled 43.7 mn sq. ft, the highest comparable addition in the post-Covid period, pushing vacancy across the top seven markets up 30 basis points quarter-on-quarter to 14.8 per cent. JLL said demand remained supported by India's talent pool and its growing role in artificial intelligence application development.

Published by HT Digital Content Services with permission from Construction World.