Flex operators set to account for 15-18 million sf of annual leasing in 2026, contributing to 20-25% share
- More than 380 million sf of existing Grade A office stock holds the potential to be listed in future REITs
- ~80% of leasing is likely to be concentrated in green certified buildings; PropTech and AI inclusion to deepen across asset lifecycle
- By 2030, Grade A office stock is likely to surpass 1 billion sf mark, meanwhile annual demand and new supply to touch 90-100 million sf and 75-85 million sf respectively
Bengaluru, 17th March 2026: India’s office market is poised to sustain its growth trajectory in 2026, with Grade A demand projected at 70-75 million sq ft and new supply at 60-65 million sq ft, supported by a deeper and more diversified occupier base, evolving occupier preferences and increasing institutionalization of the asset class. Colliers’ latest report “2026 India office: Unlocking agility, vitality and flight-to-quality”, highlights five intrinsic drivers that will shape the next phase of structural growth and occupier resilience – accelerated Global Capability Center (GCC) expansion, rising flex adoption, shift towards REIT-led ownership, tech-enabled workspaces and sustainability focused, climate resilient workplaces.
These shifts driven by agile workspace requirements and flight-to-quality, supported by cost as well as talent arbitrage of major office markets in India, can potentially set a stronger growth trajectory, especially when compared to other markets in the APAC region. By 2030, India’s Grade A office stock is likely to comfortably surpass 1 billion sq ft mark. Moreover, average vacancy levels in the leading cities are likely to decline amidst robust demand, while average rentals will firm up further.
India office market trend and outlook
| Year | 2021 | 2022 | 2023 | 2024 | 2025 | Near-term outlook (2026F) | Outlook (2030F) |
| Stock (in msf) | 643.5 | 686.5 | 736.8 | 790.4 | 847.1 | 900-920 | 1,100-1,200 |
| Demand (in msf) | 33.5 | 51.0 | 59.2 | 67.2 | 71.5 | 70-75 | 90-100 |
| Supply (in msf) | 34.9 | 43.0 | 50.3 | 53.7 | 56.5 | 60-65 | 75-85 |
| Vacancy | 18.5% | 16.4% | 17.4% | 16.7% | 16.2% | ~15% | 13-14% |
| Rentals (INR/sq ft/month) | 94.8 | 94.9 | 96.8 | 100.3 | 108.8 | 110-115 | 120-130 |
Source: Colliers
Note: Data pertains to Grade A office buildings only | Gross absorption does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed |Top 7 cities includes-Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune | Rentals are Weighted Average Quoted (WAQ) Rents, in INR per square feet per month for warm shell offices and do not include common area maintenance (CAM) or taxes.
Most of the Indian office markets are expected to witness firm demand and project completions in 2026, similar or higher than 2025 levels. This reinforces the prevailing positive occupier sentiment and continued developer confidence in the Indian office market, even in the wake of ongoing global volatilities. Bengaluru is expected to dominate the Indian office market in 2026 too, with the city accounting close to one-third of the overall leasing activity and supply additions each. Meanwhile, Hyderabad and Delhi-NCR are likely to record over 10 million sq ft of demand as well as new supply each in 2026, underscoring their continued prominence in the Indian office market.
City wise demand and new supply trends
| Demand 2025 (msf) | Demand 2026F (msf) | New supply 2025 (msf) | New supply 2026F (msf) | |||
| Bengaluru | 22.1 | 20-25 | ↑ | 17.5 | 17-20 | ↑ |
| Chennai | 9.6 | 8-10 | ↔ | 4.5 | 4-5 | ↔ |
| Delhi NCR | 11.3 | 10-12 | ↔ | 7.4 | 10-12 | ↑ |
| Hyderabad | 10.1 | 10-12 | ↑ | 10.8 | 10-12 | ↔ |
| Kolkata | 1.1 | 1-2 | ↑ | 0.1 | 1-2 | ↑ |
| Mumbai | 9.5 | 9-10 | ↔ | 5.2 | 5-7 | ↑ |
| Pune | 7.8 | 7-9 | ↔ | 11.0 | 10-12 | ↔ |
| Total | 71.5 | 70-75 | ↑ | 56.5 | 60-65 | ↑ |
Source: Colliers
Note: Data pertains to Grade A office buildings only | Gross absorption does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed | Arrows represent indicative Year-on-Year (YoY) change between 2025 and 2026 values
“India’s office market has undergone a steady transition, while picking up pace in recent years. Post the expansionary phase of 2024 & 2025, demarcated by consecutive years of record-breaking demand, the office market is set for a future-ready cycle of structural growth & institutionalization. The ongoing scale-up is likely to be driven by expanding footprint of GCCs, strengthening flex space offerings, expanding talent corridors and broadening occupier base. These enabling factors are likely to fuel Grade A leasing activity to the tune of 70-75 million sq ft in 2026, building a potential roadmap towards 100 million sq ft of annual demand in the coming years,” says Arpit Mehrotra, Managing Director, Office Services, Colliers India.
GCC leasing volumes are likely to reach 30-35 msf in 2026 and account for 40-50% share
GCCs have evolved from traditional back-offices to innovation-driven, domain specialized, technologically integrated centers and are set to drive 30-35 million sq ft of leasing in 2026, accounting for 40-50% of the Grade A office demand. They are likely to further consolidate their role as high‑value growth engines across diverse sectors like Technology, BFSI, engineering & manufacturing etc.
Trends in India GCC leasing
| Year | 2021 | 2022 | 2023 | 2024 | 2025 | 2026F |
| GCC leasing (msf) | 13.3 | 14.8 | 18.3 | 25.7 | 29.2 | 30-35 |
| Overall Leasing (msf) | 33.5 | 51.0 | 59.2 | 67.2 | 71.5 | 70-75 |
| GCC leasing share (%) | 40% | 29% | 31% | 38% | 41% | 40-50% |
Source: Colliers
Data pertains to Grade A office buildings only | Data pertains to top 7 cities Bengaluru, Chennai, Delhi-NCR, Mumbai, Kolkata, Hyderabad, Pune | GCC leasing share is share of GCC occupiers in overall leasing during a particular year
Interestingly, going ahead, as GCCs increasingly favor scalable footprints with distributed delivery hubs (HQ + satellite + flex) and flexible commitment periods, real estate developers are likely to progressively focus on modular, scalable and plug‑and‑play facilities.
Flex operators can potentially account for 20-25% of Grade A office space demand in 2026