The demand for office space in India is expected to remain robust next year, as per a report published by Colliers. As the countdown to the new year and top trends to watch start dominating headlines, Colliers outlined that increasing adoption of flexible workspaces and a preference for high-quality office spaces will boost the leasing across office spaces.
Here is a detailed analysis of the 5 major trends to watch –
#1 Bengaluru dominates the office market segment
The city of Bengaluru accounted for nearly one-third of pan-India demand, recording 22.1 million sq ft of leasing activity during the year. This was followed by strong demand in other markets such as Delhi-NCR, Hyderabad, Chennai, and Mumbai, with each city accounting for nearly 10 million sq ft of leasing.
However, demand declined in Mumbai and Hyderabad, while it increased in cities such as Chennai, Bengaluru, Pune, Kolkata and Delhi-NCR. Together, Bengaluru and Delhi-NCR accounted for nearly 60% of the total leasing activity in Q4 2025.
#2 GCCs emerge as major drivers
The Colliers report added that Global Capability Centres (GCCs) have emerged as major drivers of office demand growth. Leasing by GCCs in 2025 witnessed nearly 30 million sq ft of Grade A space uptake.
Foreign companies continue to set up GCCs in India due to the availability of skilled talent at relatively affordable rentals. Additionally, leasing by GCCs is expected to see robust growth over the next few years, supported by the recent weakness in the Indian rupee.
#3 More tenants than new office space
The Colliers report noted that companies leased office space at a faster pace than developers could deliver new supply. Most of the new buildings came up in Bengaluru, Hyderabad and Pune, where demand from technology firms, GCCs and flexible workspace operators remains strong.
As a result, the office market tightened, with demand outpacing supply, especially in key business hubs.
#4 Technology firms, BFSI and engineering companies dominate leasing
Technology firms remained the primary occupiers of office space, accounting for over 40% of total leasing activity. BFSI, engineering and manufacturing companies, along with consulting firms, also made up a significant share of demand, highlighting the growth in these sectors.
#5 Growth to come from flexible workspaces
The Colliers report also highlighted that as companies continue to expand into Tier II cities, demand for flexible workspaces is expected to grow. Flex space operators accounted for nearly 18% of the country’s total office leasing this year. Bengaluru and Delhi-NCR led the flexible space leasing, while strong demand was also observed in Pune and Chennai
All in all, the report indicated that just like 2025, Bengaluru will continue to be a key market to watch out for in 2026. Leasing for flexible workspaces are expected to see a boost going forward.