India's office market remained buoyant during January-March period of this year despite global uncertainties, with both gross and net leasing of workspaces rising by 10 per cent and 7 per cent, respectively, across seven major cities, according to JLL India.
On Monday, real estate consultant JLL India released its office market data, which showed that leasing activities remained strong, driven by demand from foreign firms to set up Global Capabilities Centres (GCCs).
As per the data, the gross leasing of office space grew 10 per cent to 21.5 million sq ft in January-March from 19.5 million sq ft in the year-ago period. Net absorption or leasing of office space rose 7 per cent to 13.7 million sq ft from 12.8 million sq ft across seven major cities-- Mumbai, Bengaluru, Delhi-NCR, Pune, Hyderabad, Chennai and Kolkata.
Gross leasing refers to all lease transactions recorded during the period, including confirmed pre-commitments, but does not include term renewals. Net absorption is calculated as the new floor space occupies less floor space vacated. Floor space that is pre-committed is not considered to be absorbed until it is physically occupied.
"India’s office market has delivered its strongest-ever first quarter...that demonstrates remarkable resilience despite global headwinds. This growth is being driven by a fundamental transformation in how global enterprises leverage India...," said Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
Leasing by foreign firms for establishing GCCs grew 43 per cent year-on-year to 9.8 million sq ft, contributing 45.5 per cent of total leasing activity," he said.
"These are not traditional back-office operations, they are strategic innovation hubs focused on AI development, digital engineering and core product development," Arora said.
Among cities, the demand was dominated by Bengaluru where the gross leasing rose 25 per cent to 5.3 million sq ft in January-March from 4.3 million sq ft in the year-ago period. The net leasing in Bengaluru grew 52 per cent to 4.9 million sq ft from 3.2 million sq ft.
Out of the total gross leasing, domestic firms took 9.2 million sq ft in January-March, up 5 per cent from 8.8 million sq ft in the year-ago period.
"Domestic occupier activity was driven by indigenous flex operators who held a dominant 57.8 per cent share of the total space leased by domestic firms during the quarter," JLL said.
Commenting on the report, Arun Narayan, Co-Founder & Chief Growth Officer, BHIVE Workspace, said, "The rise in office leasing is not a one-time spike, the demand is here to stay. Global companies are no longer just opening India offices; they're designating Bengaluru as their global operational nerve centre." Manas Mehrotra, Founder of Bengaluru-based 315Work Avenue, noted that coworking spaces are becoming a major force in reshaping India’s commercial real estate landscape.
"As organisations seek to create dynamic, future-ready workplaces, investing in high-quality, well-designed office spaces has emerged as a strategic imperative," he added.
Flexible space is now the core of business strategy, Mehrotra said.
Comments Published on April 27, 2026
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