Record Leasing, Weaker Absorption: Two Ways to Read India's Office Market

Gross Leasing vs Net Absorption: The Analytical Distinction

India's office market is usually described through two lenses. Gross leasing counts the space taken in a period, including renewals in some definitions. Net absorption counts the change in occupied space, after vacating tenants are subtracted. Consultancies define both slightly differently, so their numbers are not interchangeable. Two reports published in October 2026 illustrate the point.

Cushman & Wakefield and CBRE Q3 2026 Metrics

Cushman & Wakefield: Its Q3 2026 report on the top eight cities, carried by IANS on 10 October 2026, gave net absorption of 14.1 million square feet, up 26% on the previous quarter but down 18% on the year, because Q3 2025 had the highest quarterly absorption of that year. Year-to-date net absorption was 36.7 million square feet. Gross leasing volume was about 21.9 million square feet, up 3% on the quarter, and 64.6 million square feet in the first nine months, which Cushman & Wakefield said was the highest ever for that period. (The IANS-carried article rounded gross leasing to about 22 million.)

By city, Bengaluru led gross leasing with 5.2 million square feet, followed by Hyderabad at 4.2, Mumbai at 3.9 and Delhi NCR at 3.8. On net absorption, Hyderabad led with 4.1 million square feet, its highest quarterly level since Q4 2021, followed by Bengaluru at 4.0.

CBRE: CBRE's figures for the same quarter put leasing at about 21.0 million square feet, up 6% year on year, and about 66.4 million square feet for nine months, a record and up 8%. Hyderabad, Bengaluru and Delhi NCR together accounted for 69% of Q3 leasing.

Where they differ: Cushman & Wakefield reports 64.6 million square feet for nine months and CBRE reports 66.4 million. For Q3, 21.9 million against 21.0 million. These gaps are small relative to the totals and are consistent with differences in methodology and city coverage. The firms also differ on the annual direction of Q3: Cushman & Wakefield's net absorption fell 18% on the year, while CBRE's leasing rose 6%. That is not a contradiction, because one is net absorption and the other is leasing, but it shows why a single headline can mislead.

“Gross leasing and net absorption are different questions. Treat a headline that uses one as an answer to the other with care.”

Global Capability Centres & Sector Occupier Mix

The role of global capability centres: Cushman & Wakefield said global capability centres, which are offshore units of multinational firms, took 9.1 million square feet in Q3, or 42% of gross leasing, and about 65% of leasing in both Bengaluru and Pune. For the year to date it gave 25.3 million square feet, or 39%. CBRE put GCC leasing in Q3 at about 41% of take-up, or 8.7 million square feet, and 28 million square feet, or 42%, for nine months. The year-to-date figures differ, 25.3 against 28 million square feet, and we report both as given.

Other demand drivers: Cushman & Wakefield reported that flexible workspace operators took 3.5 million square feet in Q3, or 16%, with 11.9 million square feet year to date, up 42% on the year. CBRE put flex operators at 24% of its Q3 occupier mix. Banking, financial services and insurance led at 24% in the Cushman & Wakefield data, with IT and business-process management at 22%. CBRE reported that domestic occupiers made up about 47% of Q3 take-up, American occupiers 38% and EMEA-based occupiers 13%.

Guide to Interpreting Office Market Research

How to read office data: our guide: 1. Ask which measure. Gross leasing and net absorption answer different questions. 2. Check the city set. Eight cities, or a different set, change the total. 3. Look at concentration. A few cities and one occupier type dominate. A slowdown in GCC expansion would be felt widely. 4. Distinguish pre-commitments from completed leases. Cushman & Wakefield said pre-commitments were about 12% of year-to-date activity. 5. Read two sources. When firms differ, the range is more honest than a single number.

Strategic Implications for Occupiers, Landlords & Investors

What it means for occupiers: Companies searching for space in Hyderabad and Bengaluru face competition but also a pipeline of new supply, which we discuss in the next piece. Flexible space offers a way to scale without long commitments.

What it means for investors and landlords: This is general information, not investment advice. The concentration of demand in a few cities and in GCCs means that results will depend on global corporate decisions as much as on India's economy.

What we do not know: We do not have rents or vacancy from CBRE's page, and we could not access its full report. We do not know how each firm treats renewals.