Office Space Leasing Dips: Market Resilience Amid Global Uncertainties

Net leasing of office space in eight major Indian cities fell by 24% in early 2026, driven by reduced demand and an 18% drop in new workspace supply, according to Cushman & Wakefield. Despite global disruptions, underlying demand remains resilient with a positive long-term outlook for India.

Net leasing of office space in India's key cities dropped by 24% in January-March 2026, according to real estate consultant Cushman & Wakefield. The decline, attributed to softer demand and an 18% decrease in new supply, contrasts with the robust momentum witnessed at the end of 2025.

Concerns over the ongoing West Asia conflict have dampened corporate expansion plans, yet experts remain optimistic about India's medium to long-term real estate demand. Although net leasing saw a dip, gross leasing activity—capturing all market leases—rose by 13%, indicating stable market interest across the eight major cities.

Looking forward, executives from Cushman & Wakefield predict an eventual supply of 61 million square feet by year's end. They foresee a market stabilizing as high-quality, premium Grade A+ office spaces enter the market, potentially easing vacancy levels while acknowledging potential near-term global risks.

(With inputs from agencies.)