Interestingly, occupier demand composition is witnessing a shift, with the share of coworking and banking, financial services and insurance (BFSI) growing steadily, it said.
Coworking and banking, financial services and insurance (BFSI) increased their share of leasing, with these two segments accounting for 47 per cent of total office demand in the first nine months of 2026, up from 41 per cent a year earlier, Anarock said.
Coworking emerged as the largest occupier segment with a 26 per cent share of office demand, when compared to 23 per cent last year.
BFSI accounted for a 21 per cent share, up from 18 per cent a year earlier.
IT/ITeS share declined to 25 per cent from 29 per cent, but the sector remained second-best contributor to office leasing.
Manufacturing and industrial occupiers increased their share marginally to 15 per cent from 14 per cent, while consultancy businesses saw their share fall to 6 per cent from 8 per cent.
Ecommerce remained unchanged at 4 per cent, while miscellaneous sectors accounted for 3 per cent, compared to 4 per cent a year earlier.
“Coworking has overtaken IT/ITeS office space demand – at 26 per cent, it now commands the highest overall leasing share in the first nine months of 2026, followed closely by IT/ITeS with a 25% share and BFSI with 21 per cent,” Peush Jain, Managing Director – Commercial Leasing & Advisory, ANAROCK Group, said.
“Bengaluru saw the highest new office supply in this period – about 12.35 Mn sq ft in the first nine months of 2026 against 10.41 Mn sq ft in same period last year, denoting a 19 per cent year on yeaR rise. NCR and Pune new office supply dropped 25 per cent and 36 per cent, respectively,” he added.
Pan-India office vacancy rate declined by 105 basis points to 15.15 per cent from 16.2 per cent last year, and average office rentals rose 8 per cent to Rs 97 per sq. ft. per month from Rs 90,” Jain noted.
Hyderabad and Bengaluru were the strongest growth markets.
Hyderabad’s net absorption rose 54 per cent to 8.8 million sq ft from 5.7 million sq. ft. a year ago.
Chennai saw absorption decline by 21 per cent to 3.56 million sq. ft., even as new completions increased 9 per cent to 3.8 million sq. ft. Chennai reported the lowest vacancy at 8.75 per cent, followed by Bengaluru at 11 per cent and Pune at 11.6 per cent.
Average office rentals increased across all seven cities. Hyderabad led with 12 per cent growth, followed by NCR at 10 per cent, Bengaluru at 9 per cent and MMR at 8 per cent. Chennai, Pune and Kolkata each recorded rental increases of 6 per cent.
