Large Office Deals Drive Leasing; Bengaluru Leads

The commercial real estate market of India during the first quarter of 2026 showed ongoing dominance of large office space transactions which accounted for 65% of total leasing activity through deals that involved spaces exceeding 100000 square feet across the eight largest cities of India. According to a recent report by Knight Frank India, multinational corporations and Global Capability Centres and technology firms and flexible workspace operators maintained their demand for office space which resulted in 195 million square feet of large-format office leases from January to March 2023. 

The office market in India reached its highest strength through Bengaluru which maintains its status as the leading location for corporate growth and GCC operations in the country. The city achieved its most significant leasing activity through international technology companies and engineering firms and financial institutions and companies that focus on innovation. Bengaluru leased about 5.3 million square feet of office space during Q1 2026 according to reports which showed a major increase compared to the previous year. 

Key Highlights

• Large office transactions above one lakh square feet dominated India’s Q1 commercial leasing activity.
• Bengaluru retained leadership position driven by strong GCC and multinational corporate office demand.
• Rising office demand continues tightening vacancies and increasing rentals across major Indian business cities.

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Knight Frank India published research which showed that businesses now choose large office campuses and integrated workspaces as their preferred office solution for supporting their long-term growth plans and hybrid work arrangements. The quarter recorded multiple major transactions which exceeded one million square feet across Bengaluru, Hyderabad, Mumbai, and NCR because occupiers showed increasing confidence in the market despite ongoing global economic challenges.

Global Capability Centres which serve as the primary source of office space requirements delivered nearly 50 percent of all office space leases throughout the country. The city of Bengaluru secured a major share of GCC leasing which established its status as the foremost technology and innovation center in India. International businesses are drawn to the city because of its skilled workforce combined with developed office facilities and its vibrant startup ecosystem and its international transportation links, according to industry experts.

The report proved that office space requirements outpaced available office space in the market. The quarter saw a major increase in new office space completions yet demand grew faster than available office space which caused commercial real estate markets to experience declining vacancy rates. The market imbalance has led to continuous rent increases for premium Grade A office spaces found in Bengaluru Mumbai and NCR.

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Analysts believe India’s office market is experiencing a permanent transformation because multinational companies now consider the country to be an essential base for both operations and innovative activities instead of just a low-cost outsourcing location. The increasing demand for large office space lease agreements demonstrates that investors have confidence in the future of India commercial real estate, which will become a vital component of the international business market.