New Delhi, March 26 : Indiaâ??s office real estate market has begun 2026 on a strong note, with leasing activity touching 18.3 million square feet in the Januaryâ??March quarter, a report said on Thursday.

This marks a 15 per cent increase compared to the same period last year, according to a report by Colliers India.

The growth was largely driven by major cities like Bengaluru and Hyderabad, which together accounted for nearly half of the total leasing activity at 8.7 million square feet.

Other key markets including Mumbai, Pune, Delhi NCR and Chennai also saw healthy demand, each recording leasing between 2 and 3 million square feet.

Notably, Hyderabad and Pune witnessed more than double the demand compared to a year ago.

The report highlights that India continues to remain a preferred destination for office space in the Asia-Pacific region, supported by the expansion of Global Capability Centers (GCCs) and strong occupier demand across sectors.

GCCs alone contributed nearly half of the total leasing during the quarter, indicating sustained confidence among global firms in Indiaâ??s office market.

On the supply side, new office space additions remained robust at 11.8 million square feet in the first quarter, up 19 per cent year-on-year.

Bengaluru led the supply pipeline, contributing nearly 47 per cent of the total new completions, followed by Delhi NCR with a 17 per cent share.

Chennai and Mumbai also saw significant additions of about 1.5 million square feet each.

Conventional office leasing continued to dominate, accounting for 14.4 million square feet of the total demand.

Technology and BFSI (banking, financial services and insurance) companies were the key drivers, together making up nearly two-thirds of this segment.

Technology firms alone contributed 36 per cent of conventional leasing, with Bengaluru and Hyderabad emerging as the top destinations.

At the same time, flexible workspace operators are gaining traction. Leasing by flex space providers rose sharply by 77 per cent year-on-year to nearly 4 million square feet, making up 21 per cent of overall leasing.

Delhi NCR and Hyderabad led this segment, while cities like Kolkata and Delhi NCR saw particularly strong adoption, with flex operators accounting for around 40 per cent of total leasing.

/IANS