en.Wedoany.com Reported - In the first quarter of 2026, large office leasing deals continued to drive India's commercial leasing market, with office leases of 100,000 square feet and above accounting for 65% of total leasing activity across the country's top eight cities. Such office leasing deals recorded 19.5 million square feet during the quarter, a year-on-year increase of 3%, up from 19 million square feet in Q1 2025.

Bengaluru remained the leading market for large office leases, recording 7 million square feet of transactions in the 100,000 square feet and above category. Large office leases accounted for 77% of the city's total office leasing volume of 9.2 million square feet. Hyderabad ranked second with 4.4 million square feet of large office leasing deals, a year-on-year increase of 69%, compared to 2.6 million square feet in Q1 2025. Mumbai followed closely with 2.9 million square feet, an 81% increase over the same period last year.

Viral Desai, International Partner and Executive Director of Tenant Strategy & Solutions at Knight Frank India, said: "The Indian office market continues to be driven by strong demand from large tenants, particularly Global Capability Centres (GCCs), technology companies, and multinational corporations expanding their operations in India. While Bengaluru remains the dominant market for large office leases, cities like Hyderabad and Mumbai are experiencing accelerated growth due to expanding corporate tenant activity and demand for high-quality office infrastructure. The sustained momentum in large office leasing reflects tenant confidence in India's long-term growth story and its position as a global business hub."

In Q1 2026, mid-sized office leasing deals in the 50,000 to 100,000 square feet range recorded a transaction volume of 5.2 million square feet, a year-on-year increase of 27%, up from 4.1 million square feet in Q1 2025. This category accounted for 17% of total office leasing transactions, with Bengaluru leading at 1.5 million square feet, followed by Hyderabad and Mumbai, each at 1 million square feet. Small office leasing deals below 50,000 square feet also recorded a transaction volume of 5.2 million square feet this quarter, a year-on-year increase of 4%, up from 5 million square feet. Mumbai led in this category with a transaction volume of 1.6 million square feet, while NCR recorded 0.9 million square feet. Bengaluru and Pune followed closely, each with 0.7 million square feet.

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