Bengaluru, March 17 (IANS) India’s office market is poised to sustain its growth trajectory this year, with Grade A demand projected at 70-75 million square feet and new supply at 60-65 million square feet, a report showed on Tuesday.
Global capability centres (GCCs) have evolved from traditional back-offices to innovation-driven, domain specialised, technologically integrated centres and are set to drive 30-35 million sq ft of leasing in 2026, accounting for 40-50 per cent of the Grade A office demand,, according to Colliers’ latest report.
The GCCs are likely to further consolidate their role as high‑value growth engines across diverse sectors like Technology, BFSI, engineering and manufacturing etc.
Bengaluru is expected to dominate the Indian office market in 2026 too, with the city accounting close to one-third of the overall leasing activity and supply additions each.
Meanwhile, Hyderabad and Delhi-NCR are likely to record over 10 million sq ft of demand as well as new supply each in 2026, underscoring their continued prominence in the Indian office market.
By 2030, India’s Grade A office stock is likely to comfortably surpass 1 billion sq ft mark. Moreover, average vacancy levels in the leading cities are likely to decline amidst robust demand, while average rentals will firm up further, the report added.
“The ongoing scale-up is likely to be driven by expanding footprint of GCCs, strengthening flex space offerings, expanding talent corridors and broadening occupier base,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.
In 2026, annual leasing by flex space operators is expected to reach 15-18 million sq ft and account for 20-25 per cent of the overall leasing activity.
These enabling factors are likely to fuel Grade A leasing activity to the tune of 70-75 million sq ft in 2026, building a potential roadmap towards 100 million sq ft of annual demand in the coming years, Mehrotra added.
In 2026 and beyond, Real Estate Investment Trusts (REITs) will increase democratisation of commercial real estate in India enhancing retail investor participation.
“Moreover, developers who integrate digital infrastructure and sustainability on an ongoing basis will be best positioned to attract and retain occupiers in the long-term,” said Vimal Nadar, National Director and Head, Research, Colliers India.
—IANS
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