Hyderabad records 10.1 million sq ft of leasing in the first nine months of 2026, with GCCs and IT-BPM firms driving demand
India’s office market recorded gross absorption of 60.7 million sq ft across six major cities during January to September 2026, up 6% year on year, according to Savills India. Hyderabad accounted for 10.1 million sq ft of the total, ranking second nationally, as demand from global capability centres (GCCs), IT-BPM companies and flexible workspace operators supported leasing activity.
New office supply across Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune rose 23% year on year to 43.7 million sq ft during the period. The overall vacancy rate declined to 13% by the end of September, reflecting sustained occupier demand alongside new completions.
In Q3 2026, gross absorption reached 19.5 million sq ft, an increase of 6% year on year. Bengaluru led with 5.3 million sq ft, followed by Hyderabad at 4.2 million sq ft and Delhi-NCR at 3.4 million sq ft. IT-BPM companies accounted for 33% of quarterly leasing, followed by flexible workspaces at 21% and banking, financial services and insurance (BFSI) at 10%.
Global capability centres remained an important source of demand, accounting for approximately 5.9 million sq ft, or 30% of quarterly leasing. Hyderabad, Bengaluru and Pune together contributed around 75% of GCC-led absorption. Transactions covering 100,000 sq ft or more accounted for 46% of total leasing during the quarter.
Hyderabad recorded quarterly absorption of 4.2 million sq ft, supported by large transactions that contributed 54% of leasing activity. IT-BPM firms accounted for 44% of the space leased, or approximately 1.9 million sq ft. Flexible workspaces contributed 16%, while healthcare and pharmaceutical companies accounted for 14%. GCCs leased around 1.8 million sq ft, representing 43% of the city’s quarterly absorption.
Bengaluru maintained its lead over the nine-month period, with gross absorption of 18 million sq ft, up 25% year on year. The Outer Ring Road corridor accounted for 61% of the city’s leasing activity. Delhi-NCR recorded 9.6 million sq ft of year-to-date absorption, while Mumbai reported 8.7 million sq ft and Pune recorded 8.5 million sq ft, its highest-ever nine-month total.
Mumbai remained the tightest office market among the six cities, with vacancy at 5.5%. Its Q3 absorption rose 13% year on year to 2.7 million sq ft, led by BFSI companies, which accounted for 34% of leasing. Chennai recorded 5.8 million sq ft of absorption during the first nine months, including 1.8 million sq ft in Q3.
Hyderabad and Bengaluru together accounted for more than 15.9 million sq ft of new office completions in Q3, representing nearly 80% of the supply added across the six markets during the quarter.
Naveen Nandwani, managing director, Commercial Advisory and Transactions, Savills India, said sustained demand from GCCs and corporate expansions across IT-BPM, flexible workspaces and BFSI continued to support India’s office market. The company expects annual absorption to reach approximately 74 million sq ft in 2026, provided leasing momentum continues through the final quarter.
