According to Knight Frank India, transactions for large office spaces – area 100,000 sq ft and above – continued to dominate India’s commercial office market in Q1 2026. Large office spaces recorded a cumulative 19.5 million square feet (mn sq ft) of transactions across the eight leading cities accounting for 65% of the total office leasing activity during the quarter. This registered a year-on-year (YoY) growth of 3% from an existing high base of 19 mn sq ft in Q1 2025.

Bengaluru continued to maintain its leadership position in large office space transactions with 7 mn sq ft of leasing activity recorded in the category above 100,000 sq ft during Q1 2026. Large office spaces contributed 77% of the city’s total office transaction volumes of 9.2 mn sq ft. Hyderabad ranked second with 4.4 mn sq ft of transactions in the large office category, recording a strong YoY growth of 69% from 2.6 mn sq ft in Q1 2025, followed by Mumbai with 2.9 mn sq ft, reflecting an 81% YoY increase.

Viral Desai, International Partner, Senior Executive Director Occupier Strategy & Solutions Industrial & Logistics, Capital Markets and Retail Agency, Knight Frank India said, “India’s office market continues to witness strong demand from large occupiers, particularly from Global Capability Centres (GCCs), technology firms and multinational corporations expanding their operations in the country. While Bengaluru remains the dominant market for large office transactions, cities such as Hyderabad and Mumbai are witnessing accelerated growth driven by expanding corporate occupier activity and demand for high-quality office infrastructure. The sustained momentum in large office leasing reflects occupier confidence in India’s long-term growth story and its position as a global business hub.”

Office space leasing in the mid-segment, or spaces between 50,000 sq ft and 100,000 sq ft, stood at 5.2 mn sq ft in Q1 2026, witnessing a YoY growth of 27% from 4.1 mn sq ft in Q1 2025. The segment contributed 17% to the overall office transactions across the leading markets. Bengaluru recorded the highest transaction volumes in this segment at 1.5 mn sq ft, followed by Hyderabad and Mumbai with 1 mn sq ft each.

Office space leasing in smaller office spaces, or spaces below 50,000 sq ft, was recorded at 5.2 mn sq ft during the quarter reflecting a YoY increase of 4% from 5 mn sq ft in Q1 2025. Mumbai led the small office space segment with 1.6 mn sq ft of transactions, followed by NCR at 0.9 mn sq ft and Bengaluru and Pune at 0.7 mn sq ft each.