Knight Frank India, the leading international property consultancy, in its latest assessment of the Indian office market, has reported that NCR recorded 9.6 mn sq ft of office transactions in January-September 2026 (9M CY2026), the second-highest volume in the reported period. The market accounted for 14% of office leasing across India’s eight major markets. Average transacted rents rose 12% year on year (YoY), the second-fastest increase among the eight markets.

Office transactions totalled 4.0 mn sq ft in Q1 in 2026, 3.2 mn sq ft in Q2 and 2.4 mn sq ft in Q3. The nine-month total was approximately 4% below the strong performance recorded in 9M CY2025.

New completions adding 4.5 mn sq ft of office space during the period. Vacancy rose to 14.5% in Q3 2026 from 12.5% a year earlier, giving occupiers a wider choice of space.

Flex operators and domestic businesses lead demand

India-facing businesses remained NCR’s largest occupier group, leasing 3.3 mn sq ft and accounting for 35% of total transactions. Their leasing activity remained broadly flat year on year.

Flex operators were the fastest-growing end-user group, with leasing up 67% YoY to 3.2 mn sq ft. Their share of the market increased to 33% from 19% in the same period last year. GCCs leased 2.0 mn sq ft during 9M CY2026, accounting for 20% of total leasing activity.

Rental growth reflects demand for quality office space

Average transacted rents rose 12% YoY in Q3 2026. At INR 106.5 per sq ft per month, NCR recorded the second-fastest rental growth among India’s eight major office markets. Rents were 24% higher than in Q3 2019. Grade A space accounted for 83% of transactions during 9M CY2026.

Mudassir Zaidi, Executive Director-North, Knight Frank India , Knight Frank India, said “NCR’s office market continues to attract occupiers, with nine-month leasing among the strongest recorded in recent years. Flex operators are expanding as businesses seek greater flexibility, while India-facing companies remain the market’s largest occupier group. Vacancy has increased alongside new supply, giving occupiers more choice. Yet rental growth remains firm, underscoring the importance of location and quality in occupier decisions.”