Source: Colliers India Office Snapshot, Q1 2026 | Data pertains to Grade A office buildings across top 7 cities: Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune
Key Highlights
- Record leasing momentum: Gross absorption hit 18.3 msf in Q1 2026 — up 15% YoY across top 7 cities, marking one of the strongest starts to a calendar year
- Supply surge led by Bengaluru: New supply rose 19% YoY to 11.8 msf, with Bengaluru alone contributing 46% of all new completions at 5.5 msf
- Vacancy on a downward march: Overall vacancy fell 71 bps YoY to 15.5% — demand has consistently outpaced supply, tightening the market
- Rents firming up: Average WAQ rent rose 6.3% YoY to ₹111.6/sf/month, with Delhi NCR (+9%) and Hyderabad (+10.8%) leading the charge
- Hyderabad's breakout quarter: Leasing in Hyderabad doubled YoY to 3.4 msf — the sharpest YoY growth among all cities in Q1 2026
- Pune more than doubled: Pune's absorption surged 100%+ YoY to 2.5 msf — driven by technology and BFSI occupiers making large commitments
- GCC & enterprise deals dominate: 61% of leasing by volume was in large deals of 100,000 sf or more, reflecting continued GCC expansion by global firms
- American firms lead occupier demand: Companies from the Americas accounted for 44% of office demand in India, far ahead of domestic firms (29%)
- Tech + BFSI = 66% of conventional demand: Technology firms drove 36% and BFSI drove 30% of conventional leasing — together forming the backbone of India's office market
- Flex operators stay active: Flex space operators leased 3.9 msf (21% of total) — Hyderabad led flex absorption across all seven cities
- Mumbai vacancy at historic low: Mumbai's vacancy dropped to just 7.1% amid limited new supply — the tightest market among all top 7 cities
- Q2 2026 outlook positive: Supply, demand, and rentals are all projected to rise in the next quarter
Key Headline Numbers
| Metric | Q1 2026 Value | YoY Change |
|---|
| Total Grade A Stock | 854.2 msf | — |
| New Supply | 11.8 msf | ↑ 19% YoY |
| Gross Absorption | 18.3 msf | ↑ 15% YoY |
| Vacancy Rate | 15.5% | ↓ 71 bps YoY |
| Avg WAQ Rent (₹/sf/month) | ₹111.6 | ↑ 6.3% YoY |
Demand outpaced supply for the quarter — a sustained trend that drove vacancy down and rentals up across most cities.
Supply Highlights
- Total new supply: 11.8 msf — up 19% year-on-year
- Bengaluru led all cities with 5.5 msf of new completions, accounting for 46% of pan-India supply
- Delhi NCR, Chennai, and Mumbai each contributed 1.5–2.0 msf of new Grade A space
- Hyderabad and Kolkata saw negligible new supply in Q1 2026
City-wise Supply Share (Q1 2026):
| City | Supply Share |
|---|
| Bengaluru | 46% |
| Delhi NCR | 17% |
| Mumbai | 13% |
| Chennai | 13% |
| Pune | 11% |
| Hyderabad | 0% |
| Kolkata | 0% |
Demand / Leasing Highlights
- Total gross absorption: 18.3 msf — up 15% year-on-year
- Bengaluru + Hyderabad together drove ~48% of quarterly office demand
- Pune's leasing more than doubled on an annual basis, reaching 2.5 msf in Q1 2026
- Technology firms led conventional leasing with 5.2 msf of uptake
- Flex space operators leased 3.9 msf — remaining highly active across markets
City-wise Leasing Share (Q1 2026):
| City | Leasing Share |
|---|
| Bengaluru | 29% |
| Hyderabad | 19% |
| Mumbai | 15% |
| Pune | 13% |
| Delhi NCR | 12% |
| Chennai | 11% |
| Kolkata | 1% |
Conventional vs Flex Leasing Split
| Type | Volume (msf) | Share |
|---|
| Conventional Space | 14.4 msf | 79% |
| Flex Space | 3.9 msf | 21% |
Sector Drivers (Conventional Leasing — Q1 2026)
| Sector | Share |
|---|
| Technology | 36% |
| BFSI | 30% |
| Others (Engg. & Mftg., Healthcare, Consulting, etc.) | 34% |
Deal Size Distribution (Q1 2026)
| Deal Size | Share |
|---|
| Large (100,000 sf or more) | 61% |
| Medium (50,000–99,999 sf) | 16% |
| Small (less than 30,000 sf) | 23% |
Large deals dominated — 61% of all leasing by volume was in 100,000 sf+ transactions, reflecting strong enterprise and GCC-level demand.
Origin of Office Occupiers (Q1 2026)
| Geography | Share |
|---|
| Americas (USA & others) | 44% |
| India (domestic occupiers) | 29% |
| Europe | 9% |
| Asia-Pacific | 5% |
| Middle East | 1% |
| Others (Australia, Canada, China, Singapore, etc.) | 12% |
American companies remain the dominant force in India's office market, accounting for nearly half of all leasing.
City-by-City Snapshot
| City | Stock (msf) | Vacancy | Avg WAQ Rent (₹/sf/mo) | Rent YoY | Supply (msf) | Absorption (msf) | Absorption YoY |
|---|
| Bengaluru | 241.1 | 15.3% (↑ 5 bps) | ₹101.3 | +3.2% | 5.5 | 5.3 | +18% |
| Chennai | 89.1 | 14.7% (↑ 69 bps) | ₹78.2 | +0.1% | 1.5 | 2.0 | +31% |
| Delhi NCR | 152.1 | 15.7% (↓ 225 bps) | ₹122.1 | +9.0% | 2.0 | 2.3 | +30% |
| Hyderabad | 125.8 | 22.1% (↓ 125 bps) | ₹92.6 | +10.8% | 0.0 | 3.4 | +100% |
| Kolkata | 28.6 | 16.0% (↓ 409 bps) | ₹62.5 | +7.5% | 0.0 | 0.1 | — |
| Mumbai | 137.3 | 7.1% (↓ 116 bps) | ₹182.2 | +8.9% | 1.5 | 2.7 | +23% |
| Pune | 80.2 | 20.3% (↑ 127 bps) | ₹86.4 | +2.6% | 1.3 | 2.5 | >+100% |
Vacancy Trends
- Pan India vacancy: 15.5% — down 71 basis points YoY
- Mumbai has the tightest vacancy at just 7.1% (↓ 116 bps YoY) amid limited new supply
- Delhi NCR saw a dramatic 225 bps drop in vacancy
- Kolkata saw the sharpest drop — 409 bps YoY — though volumes remain small
- Hyderabad and Pune remain elevated at 22.1% and 20.3% respectively
Rental Trends
- Pan India avg WAQ rent: ₹111.6/sf/month — up 6.3% YoY
- Mumbai commands the highest rents at ₹182.2/sf/month (BKC at ₹386.1 — well above the dollar threshold)
- Delhi NCR saw the strongest rental growth at +9% YoY, followed by Hyderabad at +10.8% YoY
- Bengaluru remains steady at ₹101.3/sf/month (+3.2% YoY)
- Kolkata is the most affordable at ₹62.5/sf/month, up 7.5% YoY
Outlook — Q2 2026
| Indicator | Direction |
|---|
| Supply | ↑ Rising |
| Demand | ↑ Rising |
| Vacancy | → Stable |
| Rental | ↑ Rising |
Supply and demand are both expected to rise in Q2 2026, with rentals continuing their upward trajectory. Vacancy is expected to remain broadly stable.
Data Source: Colliers India Office Snapshot, Q1 2026. All figures pertain to Grade A office buildings. Gross absorption excludes lease renewals, pre-commitments, and LOI-only deals. WAQ Rents are for warm shell offices and exclude CAM charges and taxes. USD conversion: 1 USD = ₹93.48 (as of 31 March 2026).