Mumbai / Bengaluru — India is poised to take a commanding lead in the Asia-Pacific (APAC) office real-estate market in 2026, with major Indian metros expected to deliver the largest net addition of Grade-A office space across the region.
According to data compiled by real-estate services firm CBRE Group, Bengaluru is slated to add approximately 13.09 million sq ft, Hyderabad 9.25 million sq ft, and Delhi-NCR 8.98 million sq ft of Grade-A space in 2026—surpassing major APAC hubs such as Shanghai, Shenzhen and Beijing.
Drivers of growth
- Global Capability Centers (GCCs) expansion: India remains a global hub for GCCs, which are expected to drive a significant portion of the leasing spurt in top urban centres. A separate report by ICRA forecasts GCCs will lease 50-55 million sq ft of space across leading Indian cities in FY26-27.
- Domestic demand & return-to-office trends: Beyond foreign firms, Indian occupiers and service providers are expanding, boosting demand for premium office infrastructure. The rising preference for Grade-A office space with amenities, sustainable credentials and tech-ready facilities is fueling supply.
- Policy & infrastructure support: Incentives, streamlined approvals, and metro connectivity investments in cities like Bengaluru, Hyderabad and Pune are enhancing their attractiveness to corporates.
Market implications
A surge in supply poses both opportunities and risks: while occupiers gain more choice, vacancy levels and rental growth could come under pressure if leasing demand fails to keep pace. According to earlier reports, India accounted for 48% of new office supply in the APAC region in H1 2025—but caution remains regarding absorption.
Risks to watch
- Mismatch between supply and demand: If completion timelines cluster or corporates delay expansion, oversupply may squeeze rents or lead to higher vacancy.
- Macro-economic headwinds: Slower GDP growth, high interest rates or IT sector slowdowns could dampen office leasing momentum.
- Regional distribution: While metros dominate, Tier-2 cities may lag, potentially skewing supply-demand balance.
Strategic outlook
For investors, developers and corporates, the next 18 months are critical: those who secure prime locations early benefit from first-mover advantage. For tenants, negotiating leases during a supply-glut could yield better terms and incentives. Developers who focus on quality, sustainability and location will likely fare better.
Conclusion
The projection that India will “dominate Asia-Pacific Grade-A office supply in 2026” marks a watershed moment for its commercial real-estate landscape. With three Indian cities forecast to outpace traditional Asian centres, the narrative of India as a global office destination gains substance. Proper execution will determine if this optimism translates into long-term market leadership.
