- India remains among the world's fastest-growing major economies, with Real GDP growth accelerating to 7.8% in the April–June 2026 quarter, supported by strong services activity, which expanded by 10%, while financial, real estate, IT and professional services recorded 12.1% growth. Manufacturing and construction grew by 9.2% and 7.7%, respectively, reflecting sustained domestic economic activity. Retail inflation increased to 5.54% in September 2026 from 4.82% in August. India's Net Employment Outlook (NEO) projected at 54% for Q4 2026, up 6 percentage points quarter-on-quarter and 11 percentage points year-on-year.
- Q3 2026, supported by strong occupier demand, infrastructure investment and institutional capital participation. Across the top seven cities, Grade A office leasing reached approximately 20 mn sq. ft., registering 9% year-on-year growth, while new supply stood at approximately 19 mn sq. ft. GCCs remained the dominant occupier segment, accounting for 42% of leasing activity, followed by flexible workspace operators at approximately 23%. Institutional investment inflows reached USD 1.4 billion during the quarter, taking cumulative investment to USD 5.9 billion during January–September 2026.
- Bengaluru continues to retain its position as India's largest office market with approximately ~236.27 mn sq. ft. of Grade A office stock, accounting for nearly 26% of the country's total office space. The city recorded gross leasing of approximately 4.69 mn sq. ft. in Q3 2026, contributing nearly 23% of India's total office demand, while new supply additions stood at approximately 5.5 mn sq. ft., led by the Outer Ring Road (ORR), which accounted for 58% of quarterly completions. The ORR continued to dominate leasing activity with over 50% share, followed by PBD North at 21%. Information Technology remained the largest occupier segment, accounting for 23% of conventional office leasing, followed by Engineering & Manufacturing (17%) and Flexible Workspace Operators (14%). Strong occupier demand in key micro-markets pushed the citywide average warm shell rental above ₹100 per sq. ft. per month.
- Bengaluru's office market outlook remains positive, with the city accounting for approximately 32% of the combined year-to-date gross absorption across India's top seven office markets. Gross leasing reached 17.76 mn sq. ft. during January–September 2026, with full-year absorption projected at approximately 23–25 mn sq. ft. ORR continues to remain the dominant office corridor, accounting for nearly 50% of citywide transactions. Increasing demand from GCCs and R&D centres for contiguous, large-format Grade A office spaces, particularly through pre-commitments, is expected to sustain market momentum.
