# India commercial real estate market trends

> Live situation record from CLSTR: https://clstr.news/situations/india-commercial-real-estate-market-trends
> Updated: 2026-10-21T06:35:33.000Z. Sources: 4. Developments: 2.

India is experiencing growth in commercial real estate demand across both major metropolitan hubs and smaller urban centers. In major cities, occupied office space grew 7% year-on-year to 917.7 million square feet as of September 2026. Bengaluru remains the largest market, while Hyderabad recorded the fastest growth at 11%, driven largely by Global Capability Centers (GCCs).

Simultaneously, Tier-II and Tier-III cities are seeing a surge in flexible workspace usage due to hybrid work models. Coimbatore reported a 41% increase in workspace visits, with significant growth also noted in Jalandhar, Nashik, Dehradun, and Mohali. These smaller cities now host nearly 29% of the national total of flexible workspace centers, offering costs up to 50% lower than major metropolitan areas.

## Timeline

### 2026-10-21: India’s Tier-II and Tier-III cities see surge in flexible workspace usage

India's Tier-II and Tier-III cities are seeing a surge in flexible workspace demand as hybrid work trends drive employees toward professional offices closer to home.

2 sources. https://clstr.news/cluster/indias-tier-ii-and-tier-iii-cities-see-surge-in-flexible-workspace-usage

### 2026-10-18: India office space demand grows 7% to 917.7 million sq ft

India's occupied office space rose 7% to 917.7 million sq ft by September 2026, led by rapid growth in Hyderabad and Bengaluru's continued market dominance.

2 sources. https://clstr.news/cluster/india-office-space-demand-grows-7-to-9177-million-sq-ft

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Cite as: India commercial real estate market trends. CLSTR, https://clstr.news/situations/india-commercial-real-estate-market-trends