Q1 2026 closed with the strongest quarterly net absorption Indian office markets have seen. Key highlights below.
Absorption
Net absorption across the top 7 cities was 14.2 million sqft — up ~22% YoY. Bengaluru and Hyderabad together accounted for over 50% of this.
GCC share
GCCs were behind 47% of the leasing activity, continuing the multi-quarter upward trend. Captive tech, financial services, and pharma captives led take-up.
Rent action
- BKC: +3.8% QoQ — supply-constrained.
- Bengaluru ORR: +2.1% QoQ.
- Hyderabad HITEC: +2.4% QoQ.
- Mumbai Powai: +1.6% QoQ.
- Gurgaon Cyber City: +2.0% QoQ.
Notable transactions
Several large institutional acquisitions closed — a pattern of global capital partnering with Indian sponsors on Grade-A assets. Cap rates on prime office trades ranged 7.25–7.75%.
What to watch into Q2
- Supply deliveries in ORR and HITEC — will mid-year vacancy tick up?
- Interest-rate decisions and their impact on cap rates.
- Secondary SM-REIT listings and their trading behaviour.