Summary:
Hyderabad’s net office absorption rose 54% year-on-year to 8.8 million sq ft in January–September 2026. Bengaluru retained the lead by volume, while national absorption grew 2%. Rising rents, new completions and lower vacancy rates highlight varied market conditions across cities.
Hyderabad recorded a 54% YoY increase in net office absorption during January–September 2026, outpacing other major Indian office markets. Bengaluru remained larger in absolute occupied space, while overall national demand rose only modestly.
The rise in Hyderabad followed additional leasing and increased building completions. Rent growth and lower vacancies provide further context for the city's commercial property market.
Hyderabad Gains While Other Cities Diverge
Hyderabad's net office absorption reached 8.8 mn sq ft in 9M 2026, up from 5.7 mn sq ft in 9M 2025. New office completions rose 63% YoY to 9.6 mn sq ft from 5.9 mn sq ft, according to the latest market study covering seven cities.
Bengaluru recorded 11.92 mn sq ft of net absorption, an increase of 20% from 9.95 mn sq ft a year earlier. The city also added 12.35 mn sq ft of office supply, up 19%, retaining the largest share among the markets covered.
At the national level, net absorption increased just 2% YoY to 42.9 mn sq ft from 42.0 mn sq ft. The gap between Hyderabad's growth and the all-India figure indicates that tenant demand was not evenly distributed.
Net Office Absorption: 9M 2026
| Market | Net absorption |
| Bengaluru | 11.92 mn sq ft (+20%) |
| Hyderabad | 8.80 mn sq ft (+54%) |
| NCR | 7.32 mn sq ft (-11%) |
| Mumbai region | 6.65 mn sq ft (+1%) |
| Pan-India | 42.90 mn sq ft (+2%) |
Office Demand Varies by Location
Mumbai Metropolitan Region recorded 6.65 mn sq ft of net absorption, broadly flat compared with 6.6 mn sq ft last year. NCR fell 11% to 7.32 mn sq ft, while Chennai declined 21% to 3.56 mn sq ft.
Pune saw a 36% drop to 3.95 mn sq ft, and Kolkata declined 18% to 0.70 mn sq ft. These comparisons relate to occupied space taken up during the period, rather than total office stock or the number of registered property transactions.
Coworking operators accounted for 26% of gross leasing nationwide. IT and IT-enabled services followed at 25%, while banking and financial services accounted for 21%. Leasing by global capability centres represented 44% of the reported gross activity.
Rents and Vacancy Supply More Clues
Hyderabad recorded the fastest average rental growth among the seven markets, with quoted rents increasing 12% YoY to ₹77 per sq ft per month. Bengaluru's average rose 9% to ₹109, while Mumbai Metropolitan Region remained at a higher ₹156 per sq ft.
Across the seven cities, average office rents reached ₹97 per sq ft per month, rising 8% YoY. Overall vacancy eased by 105 basis points to 15.15%. New nationwide supply was 41.1 mn sq ft, below the 42.9 mn sq ft absorbed.
Demand Remains City-Specific
Hyderabad's 9M 2026 performance reflects a large increase from the previous-year base, alongside substantial new supply. The city still has to absorb upcoming office completions before vacancies can decline further. Future leasing data, occupancy, rent renewals and completions will show whether the recent pace is sustained. National growth of 2% suggests that conditions remain different across the main business districts.
