Kochi has strengthened its position as one of India’s leading Tier-II office markets, backed by a growing Grade-A office inventory, strong leasing activity and a robust talent pool that continues to attract occupiers, according to a latest real estate market assessment by Cushman & Wakefield for Q1 2026.

The city currently has around 9.7 million square feet (msf) of predominantly Grade-A office stock, with leasing volumes increasingly comparable to those seen in smaller Tier-I cities. Demand remained strong during the first quarter of 2026, driven primarily by suburban IT corridors, flexible workspace operators and a steadily expanding Global Capability Centre (GCC) ecosystem.

Veera Babu, Executive Managing Director, Tenant Representation - India, Cushman & Wakefield said in the report that Kochi’s expanding metro network, strong multi-modal connectivity, improving social infrastructure and relatively high quality of life are enhancing its appeal as a cost-effective and scalable alternative to larger metropolitan cities, supporting long-term growth across office, retail and residential real estate sectors.

Flexible workspace operators emerged as the largest occupier group, accounting for 37 per cent of leasing demand. The segment recorded absorption of 230 seats during the quarter and is expected to remain a key driver of market activity in the near term. The IT-BPM and BFSI sectors together contributed 35 per cent of overall leasing.

Kochi’s retail market also witnessed healthy activity, recording leasing of 42,000 sq ft during the quarter. Main streets dominated demand with a 96 per cent share of leasing transactions. Department stores led leasing activity with a 58 per cent share, followed by fashion retailers at 39 per cent. Domestic brands accounted for 77 per cent of leasing, while international brands contributed 23 per cent.

Mall vacancy remained low at 4.5 per cent, with Grade A+ malls reporting vacancies of just 3–4 per cent. High-street rental values continued to rise across key retail corridors.

The residential sector also recorded steady growth, with 550 housing units launched during Q1 2026. Suburban locations accounted for 55 per cent of new launches, while Off-CBD areas contributed 45 per cent. High-end and luxury housing segments together represented more than 55 per cent of new supply, with the mid-segment accounting for the remainder.

Residential property values continued to appreciate across markets. Suburban locations recorded annual price growth of 10–11 per cent in both mid and high-end segments, while premium developments in CBD and Off-CBD areas witnessed year-on-year appreciation of 11–13 per cent.

Published on June 9, 2026