The banking, financial services and insurance (BFSI) sector has emerged as the top occupier of Global Capability Centre (GCC)-driven office space in India, recording 7.32 million square feet of transactions across the country's eight major cities in the first half of 2026, according to a study by Knight Frank India released on 29 August 2026. The figure represents a 70 per cent year-on-year surge from 4.31 million sq ft recorded in the same period last year.

BFSI Dominates GCC Office Demand

The BFSI sector accounted for approximately 36 per cent of the total 20.6 million sq ft of GCC transaction volumes logged across eight major Indian cities during the January–June 2026 period. This marks a decisive shift in the composition of India's commercial real estate demand, with financial services firms rapidly scaling their in-house capability hubs across the country.

The data signals that GCC-led office absorption is no longer the exclusive domain of technology companies. BFSI players — spanning global banks, insurance majors, and asset management firms — are now driving a substantial and growing share of Grade-A office leasing activity.

Other Sectors: Mixed Picture

Non-tech service sector occupiers also registered growth, with office transactions rising 16 per cent year-on-year to 5.10 million sq ft in H1 2026, up from 4.41 million sq ft in H1 2025. This points to a broadening of India's office leasing market beyond its traditional anchors.

Manufacturing-related office absorption, however, moderated slightly to 4.05 million sq ft in H1 2026, down from 4.67 million sq ft in the year-ago period.

IT Sector Records Sharp Correction

The IT and IT-enabled services (ITeS) sector posted the sharpest decline, with total office absorption falling 28 per cent year-on-year to 4.13 million sq ft from 5.71 million sq ft in H1 2025. Analysts attribute the contraction to a period of recalibration within the global technology industry, driven by shifts in operating models and workforce strategies.

Notably, this is the second consecutive half-year in which IT's share of GCC-linked office demand has contracted, reinforcing the view that the sector is rightsizing rather than expanding its physical footprint.

What Industry Experts Said

Viral Desai, International Partner and Senior Executive Director, Occupier Strategy Solutions, Industrial and Logistics, Capital Markets and Retail at Knight Frank India, described the trend as a clear structural realignment. 'The 70 per cent YoY surge in BFSI-led GCC transactions underscores the sector's growing appetite for high-quality office spaces, while the strong growth in other service sectors points to a broader expansion of India's services economy,' Desai said.

What This Means for India's Office Market

The findings underscore a structural diversification in India's commercial real estate market, with GCC demand becoming less concentrated in a single sector. As global financial institutions deepen their India operations, cities such as Bengaluru, Hyderabad, Mumbai, and Pune are expected to remain primary beneficiaries of continued BFSI-driven leasing activity in the second half of 2026.