Large office transactions have taken the lead in India's commercial real estate market, capturing a 65% share in the first quarter of 2026, according to a recent report by Knight Frank. This surge highlights the growing demand for premium office spaces, driven primarily by technology and financial services companies.
Key Findings from the Report
The Knight Frank report reveals that total office leasing across top Indian cities reached 12.5 million square feet in Q1 2026, with large deals (over 1 lakh square feet) accounting for the majority. Bengaluru, Hyderabad, and Mumbai emerged as the top markets, collectively contributing over 70% of the total transaction volume.
Drivers of Demand
The demand for large office spaces is fueled by several factors:
- Tech Sector Growth: Global capability centers (GCCs) and IT firms are expanding their footprints, requiring large, high-quality offices.
- Return to Office: Many companies are mandating a return to office, increasing space requirements.
- Quality Focus: Businesses are prioritizing Grade A buildings with modern amenities and sustainability certifications.
City-Wise Performance
Bengaluru led the market with a 30% share, followed by Hyderabad at 22% and Mumbai at 18%. Delhi-NCR and Pune also recorded significant activity, driven by the co-working and flexible office segment.
Outlook for the Remainder of 2026
Knight Frank anticipates continued momentum in large office transactions, with potential record-breaking leasing volumes for the full year. The report notes that vacancy rates are declining in prime locations, leading to upward pressure on rents.
“The commercial real estate market is witnessing a structural shift, with large occupiers driving demand for quality spaces. This trend is expected to persist as India remains a key destination for global businesses,” said a Knight Frank spokesperson.
