Whalesbook
Mega Deals Drive Office Leasing
Corporate demand for large office spaces defined India's Q1 2026 leasing market. Mega deals, exceeding 100,000 sq ft, surged, reflecting companies' focus on quality infrastructure and talent access. Global Capability Centres (GCCs) and technology firms are consolidating, expanding large campuses for long-term commitment despite evolving hybrid work models. These significant transactions grew 3% year-on-year to 19.5 million sq ft.
Bengaluru Leads Large Office Space Demand
Bengaluru remained India's top office leasing hub for large spaces, recording 7 million sq ft in deals exceeding 100,000 sq ft. These substantial deals represented 77% of the city's total leasing volume for the quarter, showing its continued appeal for major corporate occupiers.
Hyderabad and Mumbai See Rapid Growth
Among key markets, Hyderabad and Mumbai posted the most significant year-on-year growth in large office transactions. Hyderabad saw a 69% surge to 4.4 million sq ft, while Mumbai rose 81% to 2.9 million sq ft. This indicates increased corporate leasing activity and strong demand for quality office infrastructure in these metropolitan areas.
Mid-Sized and Smaller Leases Also Grow
Mid-sized office leases, encompassing spaces between 50,000 and 100,000 sq ft, also grew healthily, up 27% year-on-year to 5.2 million sq ft. Leasing of smaller spaces below 50,000 sq ft increased 4% to 5.2 million sq ft. Mumbai led this segment, pointing to consistent demand from diverse entities including startups and financial firms.
India's Standing as a Global Hub Strengthens
The strong performance in large office leasing further solidifies India's position as a global business and Global Capability Centre (GCC) hub. Multinational firms continue to expand operations in the country, attracted by cost efficiencies and talent availability. This trend signals confidence in India's commercial real estate sector and its long-term growth potential.