Hyderabad leads India in Q3 office net absorption, South Indian cities dominate
Hyderabad emerged as India’s leading city for net office space absorption in Q3 2026, recording 4.10 million sq ft (MSF), marginally ahead of Bengaluru’s 4.02 MSF, according to Cushman & Wakefield data.
Q3 2026 office net absorption
Net office space absorption across India's top eight cities, in million square feet (MSF).
Net absorption
Hyderabad: 4.1 MSF
Bengaluru: 4.02 MSF
Delhi NCR: 2.24 MSF
Chennai: 1.04 MSF
Mumbai: 1 MSF
Pune: 0.93 MSF
Ahmedabad: 0.4 MSF
The figures represent net absorption rather than gross leasing, making them an indicator of the amount of office space actually taken up by occupiers after accounting for space vacated.
Hyderabad’s strong performance was supported by robust occupier activity. Cushman & Wakefield reported 4.21 MSF of office leasing in Hyderabad during Q3, with BFSI companies accounting for around 40% of activity and global capability centres (GCCs) contributing about 48%. Gachibowli accounted for 89% of leasing activity during the quarter.
Bengaluru also recorded strong demand, with 4.0 MSF of net absorption and 5.2 MSF of office leasing in Q3. GCCs accounted for 65% of leasing activity, while the Outer Ring Road accounted for 61% of leasing.
Together, Hyderabad, Bengaluru and Chennai accounted for 9.16 MSF of the 13.03 MSF of net office absorption represented by the eight cities, underlining the continued strength of South India’s commercial office market.
The latest numbers reinforce the growing importance of Hyderabad and Bengaluru as major destinations for GCCs, technology companies, BFSI firms and other large office occupiers, while Chennai continues to contribute significantly to South India’s overall office-market demand.
