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India's Grade A office market is expected to maintain strong momentum in 2026, with leasing demand projected at 70-75 million sq ft and new supply estimated at 60-65 million sq ft, according to a report by Colliers. Expansion of Global Capability Centres (GCCs), rising adoption of flexible workspaces, and increasing institutional investment through REIT structures are identified as key drivers of growth. GCC occupiers are expected to account for 30-35 million sq ft of leasing, representing nearly 40-50% of demand, while flex space operators may lease 15-18 million sq ft. Major office markets including Bengaluru, Hyderabad, and Delhi NCR are likely to lead both demand and supply activity, supported by technology-driven occupiers and expanding talent corridors.
India's office real estate sector is expected to sustain its growth trajectory in 2026, with Grade A office leasing projected to reach 70-75 million sq ft and new supply estimated at 60-65 million sq ft across major cities, according to a report released by Colliers in the past week. Advertisement
The report indicated that India's office market is entering a phase of structural growth supported by a diversified occupier base, evolving workplace strategies, and increasing institutionalisation of the asset class. Demand is expected to remain strong despite global economic uncertainties, driven by expansion of Global Capability Centres (GCCs), growing adoption of flexible workspaces, and the shift towards high-quality, technology-enabled buildings.
Total Grade A office stock in the country has increased steadily over the past five years, rising from approximately 643.5 million sq ft in 2021 to about 847.1 million sq ft by 2025. In 2026, the stock is expected to reach between 900 million and 920 million sq ft, with projections indicating that the overall inventory could exceed 1 billion sq ft by 2030.
Leasing activity in the near term is expected to remain concentrated in leading markets including Bengaluru, Hyderabad, Delhi NCR, Mumbai, Chennai, Pune, and Kolkata. Bengaluru is likely to remain the largest contributor to leasing and supply additions in 2026, accounting for nearly one-third of the overall market activity.
According to the report, Hyderabad and Delhi NCR are also expected to record more than 10 million sq ft each in leasing demand and supply additions during the year, reinforcing their importance as major office markets in the country.
Global Capability Centres are projected to play a significant role in driving demand. Leasing by GCC occupiers is expected to reach 30-35 million sq ft in 2026, accounting for around 40-50% of total Grade A absorption. These centres are increasingly evolving from traditional back-office operations into innovation-driven hubs supporting sectors such as technology, banking and financial services, engineering, and manufacturing.
Arpit Mehrotra indicated that India's office market has transitioned steadily in recent years and is moving towards a future-ready cycle of institutional growth. He noted that the expansion of GCCs, rising flex space adoption, and broader occupier participation are expected to support sustained leasing demand in the coming years.
Flexible workspace operators are also expected to increase their footprint in the market. Annual leasing by flex operators is projected to reach 15-18 million sq ft in 2026, accounting for approximately 20-25% of total leasing activity. The overall flex office stock in India is expected to reach around 85-90 million sq ft by 2026 and exceed 100 million sq ft by 2027.
The report also highlights the growing importance of sustainability and technology integration in office developments. Around two-thirds of India's office stock is already green certified, and more than 80% of new supply expected in 2026 is likely to carry green certifications. Leasing in such buildings is projected to account for nearly 80% of overall office absorption.
Vimal Nadar noted that climate-ready assets are increasingly becoming central to institutional investment strategies, with ESG performance emerging as a key factor influencing asset valuation and occupier preference. He added that retrofitting opportunities exist across more than 420 million sq ft of older office buildings, presenting a potential investment opportunity exceeding INR 500 billion.
In parallel, Real Estate Investment Trusts (REITs) are expected to expand their presence in the sector. Out of approximately 525 million sq ft of REIT-worthy Grade A office assets in India, around 141 million sq ft is already listed under existing office REITs, while the remaining stock has the potential to be monetised through future listings.
The report indicates that as technology adoption expands across the lifecycle of office assets from planning and construction to operations and tenant experience developers and investors are likely to increasingly focus on digitally integrated and sustainable workplaces to attract global occupiers.
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