India’s office market is expected to remain on a strong footing in 2026, with demand for workspace and new project completions holding steady, according to a report by Colliers, even as global headwinds persist amid ongoing geopolitical tensions.After two consecutive years of record leasing, the office market is entering a more stable growth phase, with demand expected to remain elevated even as supply keeps pace. Growth will be led by GCC expansion, flexible workspace operators and a continued shift towards premium, green-certified buildings, alongside rising institutional investment.Also Read: Fresh office space supply in key cities set to surgeThe report said the next phase of growth will be driven by rapid expansion of Global Capability Centres (GCCs), rising adoption of flexible workspaces, and a shift towards technology-enabled and sustainable offices.By the end of the decade, India’s premium office space stock is expected to cross the 1 billion sq ft mark, with both demand and new supply rising significantly.Live Events”Despite global economic headwinds, India continues to stand out as a preferred expansion market, backed by its deep talent pool and cost advantages. In this context, enterprises, particularly GCCs are increasingly adopting asset-light, managed workspace models that enable faster market entry, improve capital efficiency, and allow sharper focus on core business priorities,” Sanjay Choudhary, Founder & CEO, Incuspaze, told ET Online. India office market trend and outlookYear20212022202320242025Near-term outlook (2026F)Outlook (2030F)Stock (in msf)643.5686.5736.8790.4847.1900-9201,100-1,200Demand (in msf)33.551.059.267.271.570-7590-100Supply (in msf)34.943.050.353.756.560-6575-85Vacancy18.5%16.4%17.4%16.7%16.2%~15%13-14%Rentals (INR/sq ft/month)94.894.996.8100.3108.8110-115120-130Top cities to drive activityLeasing and construction activity is expected to remain strong across major cities, led by Bengaluru, which is likely to account for nearly one-third of total demand and new supply in 2026.Delhi NCR and Hyderabad are also expected to remain key markets, each likely to see significant additions in both demand and supply.Vacancy levels are projected to ease further, while rentals are expected to inch up as demand remains firm.City wise demand and new supply trendsDemand 2025 (msf)Demand 2026F (msf)New supply 2025 (msf)New supply 2026F (msf)Bengaluru22.120-25↑17.517-20↑Chennai9.68-10↔4.54-5↔Delhi NCR11.310-12↔7.410-12↑Hyderabad10.110-12↑10.810-12↔Kolkata1.11-2↑0.11-2↑Mumbai9.59-10↔5.25-7↑Pune7.87-9↔11.010-12↔Total71.570-75↑56.560-65↑GCCs, flex spaces to anchor demandGlobal Capability Centres are expected to remain the biggest demand drivers, accounting for nearly half of all office leasing in 2026 as companies expand their India operations.Flexible workspace operators are also set to play a larger role, as companies increasingly opt for scalable and cost-efficient office solutions to support hybrid work models.Trends in India GCC leasingYear202120222023202420252026FGCC leasing (msf)13.314.818.325.729.230-35Overall Leasing (msf)33.551.059.267.271.570-75GCC leasing share (%)40%29%31%38%41%40-50%Push towards green, tech-enabled officesSustainability is emerging as a key theme, with a large share of new office supply expected to be green-certified. Companies are increasingly choosing energy-efficient, climate-resilient buildings that align with their ESG goals.At the same time, technology adoption across office assets—from planning to day-to-day operations—is expected to deepen, as occupiers prioritise modern, future-ready workplaces.”Enterprise-led managed office solutions, helps organisations maintain leaner balance sheets while accelerating growth. Simultaneously, demand is shifting towards premium, tech-enabled and sustainable workspaces, signalling a broader transformation in how office spaces are evaluated, where agility, experience, and efficiency take precedence over traditional leasing models,” Incuspaze’s Choudhary noted.Also Read: India emerges as world’s fastest-growing, most cost-competitive office marketREIT pipeline and investment scope expandThe report also highlighted a growing pipeline of office assets that could be listed under real estate investment trusts (REITs), signalling deeper institutional participation in the sector.Additionally, older office buildings are likely to see significant upgrades, opening up a large investment opportunity in retrofitting and modernisation.
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