India office space demand grows 7% to 917.7 million sq ft

India's occupied office space across eight major cities grew 7% year-on-year to 917.7 million square feet as of September 2026, according to data from Knight Frank India. This growth reflects sustained expansion in commercial real estate demand, driven by business expansion and evolving workplace requirements.

Bengaluru remains the largest market, with occupied stock rising 9% to 227.9 million square feet. Hyderabad recorded the fastest growth among the eight major cities, with an 11% increase to 119.8 million square feet. Hyderabad has emerged as a primary destination for Global Capability Centers (GCCs), capturing approximately 45% of the new GCCs established in India last year.

Other notable market movements include Pune crossing the 100 million square feet milestone and Mumbai seeing a 5% increase to 148.2 million square feet. The National Capital Region (NCR) showed the slowest growth at 2%. In Hyderabad's Hi-Tech City area, vacancy rates for institutional-grade buildings remain low at approximately 2%, while rental prices have trended upward.