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[BUSINESS] · India · 6 sources

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India commercial property market sees record office supply and rising absorption

India commercial real estate office absorption property supply BFSI sector IT-ITeS

India’s commercial property market is experiencing a significant surge in supply and demand. In the July–September 2026 quarter, office absorption reached 23.7 million sq. ft., a 20% increase year-on-year. This represents the second-highest quarterly absorption on record.

New office completions hit a quarterly record of 18.4 million sq. ft., up 24% from the previous quarter. Bengaluru, Hyderabad, and Pune were the primary drivers, accounting for 84% of these new completions. Hyderabad recorded its highest-ever quarterly supply with 7.2 million sq. ft., while Bengaluru contributed 5 million sq. ft.

The occupier base is diversifying. While IT-ITeS remains the largest contributor to absorption, its market share declined to 23% from 41% in the previous quarter. Conversely, the Banking, Financial Services and Insurance (BFSI) sector's share rose to 20%, and Flex Spaces/Managed Offices accounted for 20% of total absorption.

In the retail sector, CRISIL Ratings expects mall operators’ revenue growth to accelerate to 14–16% in the next fiscal year, driven largely by new retail space.

Entities

Bengaluru · CRISIL Ratings · Hyderabad · Pune · Vestian

Claims

What the coverage asserts, and how many sources carry each claim.

  • [● 2 SOURCES] India's office market absorbed 23.7 million sq. ft. in the July–September 2026 quarter. tezzbuzz.com · torbitrealty.com
  • [○ 1 SOURCE] Bengaluru, Hyderabad, and Pune accounted for 84% of new office completions. tezzbuzz.com
  • [○ 1 SOURCE] Flex Spaces/Managed Offices accounted for 20% of office absorption in Q3 2026. torbitrealty.com
  • [○ 1 SOURCE] BFSI sector absorption rose to 20% in Q3 2026. torbitrealty.com
  • [○ 1 SOURCE] IT-ITeS absorption share declined to 23% in Q3 2026 from 41% in Q2 2026. torbitrealty.com
  • [○ 1 SOURCE] CRISIL Ratings expects mall operators' revenue growth to reach 14–16% next fiscal year. tezzbuzz.com
  • [○ 1 SOURCE] Office completions reached a quarterly record of 18.4 million sq. ft. tezzbuzz.com
  • [○ 1 SOURCE] Hyderabad added 7.2 million sq. ft. of new office supply in the quarter. tezzbuzz.com

Sources

Indian Corporates Drive Next Phase of Workspace Growth as Flex Demand Reaches Record High: myHQ [realtynmore.com]
India’s commercial property boom faces revenue test as supply hits record highs – Tezzbuzz [tezzbuzz.com]
India’s office absorption rises 20% YoY to 23.7 million sq ft in Q3 2026 [torbitrealty.com]
Foreign investors dump 53 major stocks is it still safe to invest - Read Full Report Here [www.zoomnews.in]
India's realty sector sees $2.1 billion institutional inflows in Q3, up 20 pc: Report [bhaskarlive.in]
India real estate investment reached USD 2.1 billion in Q3 2026 as foreign capital regains lead | Business [www.devdiscourse.com]