Bengaluru, Hyderabad Office Supply Doubles as India Leasing Hits Record

Bengaluru and Hyderabad accounted for the sharpest expansion in new office space among India’s seven major city markets in the first nine months of 2026. Their combined supply more than doubled to 30.45 million sq ft, while leasing across all seven cities reached a record 61.06 million sq ft. The figures point to a market where new construction is concentrated in two cities even as occupier demand is spread more widely.

JLL India’s data puts fresh office supply across the seven markets at 43.66 million sq ft for January through September, up from 38.84 million sq ft in the same period a year earlier. The cities covered are Bengaluru, Pune, Hyderabad, Chennai, Mumbai, Delhi-NCR and Kolkata. Bengaluru and Hyderabad were the only two to record an increase in new supply.

Two cities drive new construction

Combined supply in Bengaluru and Hyderabad climbed from 14.72 million sq ft to 30.45 million sq ft. Bengaluru’s total more than doubled, reaching 18.35 million sq ft from 8.59 million sq ft. Hyderabad added 12.10 million sq ft, up 98 per cent from 6.13 million sq ft.

The rise in construction alongside higher leasing suggests developers and occupiers are responding to active demand in these markets. The data does not, by itself, show how quickly the newly completed space will be occupied or how much is already committed. Supply measures space entering the market; gross leasing captures leasing activity, and the two figures describe different sides of the market.

That distinction matters as the scale of new space grows. If companies continue taking space at a strong pace, additional supply can give them more choice and room to expand. If leasing slows or new space arrives faster than companies absorb it, vacancies may rise. The source data does not provide city-level vacancy figures or a breakdown of how much of the new supply has been leased.

Leasing reaches a new high

Gross leasing across the seven cities rose 8 per cent to 61.06 million sq ft during the first nine months of 2026, a record for that period. Bengaluru remained the largest market by this measure, accounting for 28 per cent of leasing volumes. Its leading share helps explain why it features prominently in both the demand story and the surge in fresh supply.

JLL India CEO Radha Dhir said global capability centres, or GCCs, leased 26.2 million sq ft in the nine months. That equals 84 per cent of the space they took in all of 2025, which she described as a record year. GCCs represented 42.9 per cent of total office demand, while foreign occupiers accounted for 62 per cent of leasing, according to Dhir.

Those figures make GCC activity a central part of the current market picture. Dhir said companies are expanding in India despite global uncertainty, citing access to talent and growth opportunities. She also said active negotiations and plans by additional GCCs could push 2026 leasing beyond the previous year’s record. That outlook depends on those discussions translating into signed leases; the figures provided do not establish how much future demand is already committed.

Changing workplace needs add to demand

Industry executives linked the two cities’ expansion to technology businesses and the evolution of GCCs. Sattva Group strategy vice-president Shivam Agarwal said these centres are taking on global responsibilities in areas including AI, product engineering, research and innovation. In his view, that shift makes high-quality Grade A offices more strategically important.

BHIVE Workspace co-founder and chief growth officer Arun Narayan also pointed to technology-led companies and GCCs as drivers of demand. He said flexible workspace operators are expanding to serve companies seeking adaptable office arrangements. Across the seven cities, flexible space operators leased 13.83 million sq ft in the first nine months of 2026, according to JLL’s data.

That activity offers another measure of how companies are arranging their workplaces. Flexible operators can provide space for businesses that want to adjust capacity as teams or requirements change. The leasing total signals substantial activity in that segment, though it does not reveal how much space operators have made available to their own customers or the terms on which they have leased it.

Redbrick Offices managing director Ayush Goenka said vacancy across the seven cities was 14.8 per cent, lower than a year earlier. That aggregate figure provides a useful counterpoint to the increase in new construction: more space is entering the market while the reported vacancy rate has declined year over year. It does not show how vacancies differ by city, building quality or office segment.

SpazeOne co-founder Sijo Jose said the new supply reflects confidence in Bengaluru and Hyderabad and the need for workplaces that can keep pace with expansion. He expects premium managed offices to serve companies seeking flexibility and room to scale. The key measure to watch is whether leasing keeps pace with completions, especially in these two cities, where the increase in supply is concentrated.