Large office transactions lead India's commercial real estate market with 65% share in Q1 2026: Knight Frank

New Delhi [India], May 8 : Large office space transactions, which are areas of 100,000 square feet and above, accounted for 65 per cent of the total commercial leasing activity across India's top eight cities in the first quarter of 2026. This segment continues to dominate the market as corporations seek expansive workspaces to accommodate growing operations.

According to a report by Knight Frank India, these large-scale deals reached a cumulative 19.5 million square feet (mn sq ft) during the quarter. This volume represented a 3 per cent year-on-year growth from a high base of 19 mn sq ft recorded in the first quarter of 2025. Total office leasing across all size categories reached 29.9 mn sq ft for the period.

Bengaluru maintained its primary position in the large office segment, recording 7 mn sq ft of transactions in the category above 100,000 sq ft. These large deals comprised 77 per cent of the city's total leasing volume of 9.2 mn sq ft.

Hyderabad followed in second place with 4.4 mn sq ft in large transactions, marking a 69 per cent increase from the 2.6 mn sq ft seen in the same period last year. Mumbai also reported significant growth in this category, with transactions rising 81 per cent to reach 2.9 mn sq ft.

Viral Desai, International Partner and Senior Executive Director at Knight Frank India, said, "India's office market continues to witness strong demand from large occupiers, particularly from Global Capability Centres (GCCs), technology firms and multinational corporations expanding their operations in the country. While Bengaluru remains the dominant market for large office transactions, cities such as Hyderabad and Mumbai are witnessing accelerated growth driven by expanding corporate occupier activity and demand for high-quality office infrastructure. The sustained momentum in large office leasing reflects occupier confidence in India's long-term growth story and its position as a global business hub."

The mid-segment of the market, consisting of office spaces between 50,000 and 100,000 square feet, contributed 17 per cent to the overall transaction volume. This segment recorded 5.2 mn sq ft in Q1 2026, which is a 27 per cent increase from the 4.1 mn sq ft recorded in Q1 2025. Bengaluru led the mid-segment with 1.5 mn sq ft, while Hyderabad and Mumbai followed with 1 mn sq ft each.

Leasing activity for smaller office spaces, those below 50,000 square feet, also accounted for 17 per cent of the total market at 5.2 mn sq ft. This category saw a 4 per cent year-on-year increase. Mumbai emerged as the leader in the small office segment with 1.6 mn sq ft of transactions, followed by the National Capital Region (NCR) at 0.9 mn sq ft. Bengaluru and Pune each recorded 0.7 mn sq ft in this category.

In other regional performances, NCR saw 2.7 mn sq ft of transactions in the large office category, representing 68 per cent of its total 4 mn sq ft leasing volume. Pune recorded 1.8 mn sq ft in large deals, making up 58 per cent of its market activity.

Conversely, Ahmedabad and Kolkata's markets were driven primarily by small and mid-sized leases.

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