Office rents break record; cross ₹100 per square foot

There has been a strong surge in the country’s office market. In the first quarter of 2026, the average office rent crossed ₹100 per square foot for the first time. After the pandemic, vacancy rates in eight major cities have fallen to 13.85%. In several areas of Bengaluru and Mumbai, it has now become difficult to find space.
According to a Cushman & Wakefield report, a 43% drop in new supply and increased activity from global companies have changed the market dynamics. The demand from Global Capability Centers (GCCs) has played a major role in this growth. Their share in total leasing has reached 40%, up from 38% last year.
In the first quarter, 2.2 crore square feet of office space was leased. Of this, the IT sector accounted for 23%, while banking and finance contributed 21%.