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Net Office Leasing Drops 20% in Top 8 Cities Due to Supply Constraints
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CNBC TV18•10-10-2026, 16:12
Net Office Leasing Drops 20% in Top 8 Cities Due to Supply Constraints
- •Net leasing of office spaces fell 20% annually to 36.7 million sq ft across eight major cities in the January-September period, according to Cushman & Wakefield.
- •The decline was attributed to a limited fresh supply of quality workspaces and a high base effect from the previous year.
- •Despite lower net absorption, gross leasing of office spaces rose 1% to reach a record 64.6 million square feet during the same period.
- •Net leasing declined in five cities including Mumbai and Delhi-NCR, but increased in Bengaluru, Hyderabad, and Ahmedabad.
- •Global capability centres continue to drive sustained demand, supported by India's huge talent pool and cost competitiveness.
Key Questions Answered
Net office leasing fell 20% annually to 36.7 million sq ft due to limited fresh supply of quality workspaces and a high base effect from the previous year.
Net office leasing increased in three cities: Bengaluru saw a 16% rise to 11 million sq ft, Hyderabad grew 41% to 7.3 million sq ft, and Ahmedabad surged 81% to 1.2 million sq ft.
Gross office leasing rose 1% to reach a record 64.6 million square feet, demonstrating market resilience and depth despite macroeconomic and geopolitical uncertainties.
