India’s office market gross leasing records strong growth in 9-months

India’s office market has had its strongest start to a year on record. Gross leasing reached 61.06 million sq. ft in January–September 2026, higher than any previous nine-month period, according to JLL survey. After a mid-year lull, the July–September quarter was the strongest of the year, with 23.17 million sq. ft leased.

JLL says a sharp rebound in deal closures drove the recovery, with global capability centres (GCCs) leasing record space. Net absorption, which counts space actually occupied, rose 5.3% year-on-year to about 42 million sq. ft in the nine months, also an all-time high.

“Q3 showed what happens when confidence returns to India’s office market,” said Radha Dhir, CEO, India, JLL. Deals put on hold in Q2 were signed, she said, and companies are not waiting for global uncertainty to clear.

GCCs leased 26.2 million sq. ft in nine months, up 30.6% from 20.0 million sq. ft a year earlier. That is already 84% of what they took in all of 2025, itself a record year, and equals 42.9% of all office demand. Technology and BFSI firms drove GCC expansion, with manufacturers close behind. Foreign-headquartered organisations accounted for 57.8% of leasing over the period.

Dhir said active negotiations continue and more GCCs are preparing to set up in India, so 2026 is set to comfortably pass last year’s record. Foreign non-GCC firms leased 29% less, while domestic occupiers leased 9.2% more.

Among domestic occupiers, indigenous flex operators took 52% of the space leased. Flex operators overall secured 13.83 million sq. ft across the top seven cities in nine months, an all-time high for the segment.

Domestic technology firms are shifting towards higher-value services. They are using AI to offer customised, long-term solutions and are offering GCC-as-a-service for global companies.

Over nine months, Bengaluru held the top spot with 28.0% of gross leasing and 17.11 million sq. ft, followed by Delhi NCR, Hyderabad, Mumbai and Pune. Bengaluru, Hyderabad, Mumbai and Pune all recorded year-on-year growth, with Hyderabad up 32.0% and Pune up 31.6%. Delhi NCR was down 17.0%.

In net absorption, Bengaluru led with a 31.3% share, followed by Hyderabad at 21.4%, Delhi NCR at 14.5% and Pune at 13.9%. Bengaluru and Pune both had their highest net absorption for any January–September period.

Chennai was among the weaker markets. Gross leasing was 1.41 million sq. ft in Q3, down 38.3% from Q2, and 5.39 million sq. ft over nine months, down 13.1% year-on-year. Net absorption was 0.78 million sq. ft in Q3 (down 31.3% quarter-on-quarter) and 2.94 million sq. ft for the nine months (down 25.6% year-on-year). Chennai’s vacancy was lower than a year ago.

Pan-India vacancy across the top seven cities rose 30 basis points quarter-on-quarter to 14.8%, though it is 90 basis points lower than a year ago. The increase came as 43.7 million sq. ft of new space was completed in nine months, the highest for the period since the pandemic, and Q3 saw the largest quarterly supply in nearly five years.

Prime districts kept single-digit vacancy as a “flight to quality” favoured premium buildings. Mumbai and Delhi NCR vacancy fell to 16-year and 15-year lows respectively. Hyderabad held steady at its 2025 year-end level despite heavy supply, while Bengaluru’s rose slightly because of large completions.

JLL expects 2026 leasing to match 2025’s historic level despite mid-year headwinds. India’s talent in AI, data science and digital engineering continues to draw global firms, and GCC demand is broad, covering banking and financial services, manufacturing, tech R&D, retail, logistics, infrastructure and aerospace. Tightening vacancy in core assets and a healthy pipeline of institutional-quality supply support momentum. Gross leasing could reach 100 million sq. ft within the next two to three years.

How the capital gains tax is computed while selling for inherited property? Please clarify. Aditya, Sharjah.

Capital gains apply on sale of inherited property. The cost of acquisition is considered on the original purchase price paid by the deceased, or the fair market value as of April 1, 2001, if the property was acquired before that date. Long‑term capital gains tax is levied if the property is held for more than 24 months before sale. Legal heirs must obtain a valuation report from a registered valuer to determine the correct cost base.

Can consumers file complaint online Please guide? B Deshmukh, Dubai.

Yes. They also have the option of seeking redressal online before filing a case in the consumer court. Such complaints can be lodged through the National Consumer Helpline website. Once a complaint is registered, it is forwarded to the concerned trader or service provider for resolution. In many cases, grievances may be settled through this mechanism itself, helping the consumers the hassle of seeking court proceedings.

V Nagarajan