India’s Office Leasing to Remain Resilient, Expected to Hit 85-90 million Square Feet in FY27
- IBEF
- June 16, 2026
India’s commercial office market is expected to maintain its steady growth trajectory in FY27, with gross leasing projected to rise by 12–14% year-on-year to 85-90 million sq. ft, according to India Ratings & Research (Ind-Ra). The outlook reflects continued resilience in demand, supported by the expansion of Global Capability Centres (GCCs) and the growing adoption of flexible workspaces. Ind-Ra estimates office leasing at 79-80 million sq. ft in FY26, up about 10% from the previous year, even though leasing in 1HFY26 stood at 29.5 million sq. ft, down 8% year-on-year due to a high base and limited ready Grade A supply in prime markets. The agency expects activity to strengthen in the second half of FY26 and carry forward into FY27, reinforcing the view that India’s office market remains structurally supported by occupier demand and disciplined supply addition.
GCCs continue to anchor demand, accounting for 35–45% of annual leasing in 2025, with expansion across technology, BFSI and engineering functions driving larger deal sizes and stronger absorption. Domestic occupiers, including IT-BPM, BFSI, manufacturing and flex-space operators, are also supporting the market, while flexible and managed offices are becoming a structural part of leasing strategy rather than a cyclical trend. India is now the largest flex workspace market in Asia-Pacific and is expected to cross 100 million sq. ft of flex stock by 2026. On the supply side, office stock across the top eight cities is projected to reach 1,391 million sq. ft by March 2026 and 1,507 million sq. ft by March 2027, while pan-India rentals are expected to rise 5–7% in FY26 before moderating to 4–6% in FY27. Vacancy levels are likely to remain range-bound, while premium, green-certified assets are expected to retain pricing power.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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