India's office space leasing down 20% in Jan-Sep: Report
What's the story
The net leasing of office spaces in India has witnessed a sharp decline of 20% during the January-September period, according to a report by real estate consultant Cushman & Wakefield. The total net leasing stood at 36.7 million sq ft across eight major cities, down from 46 million sq ft during the same period last year. The decline is attributed to limited fresh supply of quality workspaces and a high base effect.
City-wise analysis
Gross leasing of office spaces rose by 1%
The report revealed that net absorption or leasing of office space has declined in Mumbai, Delhi-NCR, Pune, Chennai, and Kolkata.
However, Bengaluru, Hyderabad and Ahmedabad witnessed an increase during this period.
Despite the fall in net leasing numbers across most cities, gross leasing of office spaces rose by 1% to a record 64.6 million sq ft during this time.
Market resilience
Cushman & Wakefield report highlights
Anshul Jain, CEO of India, SEA, MEA & APAC Office and Retail at Cushman & Wakefield, emphasized the strength of India's office market.
He said that with 64.6 million sq ft of gross leasing in the first nine months of 2026, it is the highest ever for this period.
Jain attributed this sustained office leasing to global capability centers (GCCs) being set up by international companies in India due to its talent pool and cost competitiveness.
Supply constraints
Healthy occupier demand in India's office market
Veera Babu, Executive Managing Director of Tenant Representation-India at Cushman & Wakefield, acknowledged the healthy occupier demand in India's office market.
He said that India's office market continues to see healthy occupier demand, with net absorption reaching 14.1 million sq ft during the third quarter and 36.7 million sq ft during the first nine months of the year.
However, he also noted that this year's net absorption was lower than last year due to a strong base effect.