Large space deals account for 65 pc of India’s office leasing market: Report

New Delhi, May 8 Transactions for large office spaces of 1 lakh square feet and above continued to dominate India’s commercial office market in Q1 2026, with large deals accounting for 65 per cent of total leasing activity across eight leading cities, a report said on Friday.

The report from Knight Frank India said the large office space leasing saw year‑on‑year growth of 3 per cent to 19.5 million sq ft from a base of 19 million sq ft in Q1 2025.

Bengaluru continued to maintain its lead in the large‑space office transactions with 7 million square feet of leasing in Q1 2026, representing 77 per cent of the city’s total office transactions of 9.2 million square feet.

Hyderabad ranked second with 4.4 million sq ft in the large office category, up 69 per cent from 2.6 million square feet a year earlier, followed by Mumbai with 2.9 million square feet, marking an 81 per cent increase.

“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," said Viral Desai, International Partner, Senior Executive Director Occupier Strategy & Solutions Industrial & Logistics, Capital Markets and Retail Agency, Knight Frank India.

Hyderabad and Mumbai are witnessing accelerated growth driven by expanding corporate occupier activity and demand for high-quality office infrastructure, he said.

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, he added.

Mid‑segment office leasing for spaces between 50,000 sq ft and 1 lakh sq ft stood at 5.2 million square feet in Q1 2026, up 27 per cent from 4.1 million square feet in Q1 2025.

The category contributed 17 per cent of overall transactions across the leading markets. Bengaluru recorded the highest transaction volumes in this segment at 1.5 million square feet, followed by Hyderabad and Mumbai at about 1 million square feet each.

Leasing of smaller office spaces below 50,000 sq ft rose to 5.2 million square feet, up 4 per cent from 5 million square feet in Q1 2025, with Mumbai leading that segment.

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