GCCs drive 45% of India office leasing in H1 2026, lease 19.2 mn sq ft
Synopsis
GCCs are no longer just tenants — they are the engine of India's office market. Leasing 19.2 million sq. ft. in just six months and claiming 45% of gross absorption, with Bengaluru and Hyderabad posting double-digit annual growth, the data shows multinationals are making long-term bets on India for core functions like AI, R&D, and cybersecurity — not just back-office work.
Key Takeaways
GCCs leased 19.2 million sq. ft. of office space in H1 2026 , capturing 45% of India's gross leasing activity.
Overall gross leasing across India's top 7 cities reached approximately 42.6 million sq. ft. in H1 2026.
GCC share rose from 41% in H1 2025 (15.78 mn sq. ft.) to 45% in H1 2026 (19.2 mn sq. ft.).
Bengaluru led with GCCs taking 70% of its 10.8 mn sq. ft. absorption; Chennai at 55%, Hyderabad at 48%.
Grade A net absorption reached 27.44 million sq. ft. , up 2% year-on-year.
Office vacancy across top 7 cities fell to 15% in H1 2026 from 16.3% in H1 2025.
Global Capability Centres (GCCs) leased approximately 19.2 million sq. ft. of office space across India's top seven cities in the first half of 2026, capturing 45 per cent of total gross leasing activity, according to a report released on Friday, 17 July. The data underscores the structural dominance of GCCs in shaping India's commercial real estate landscape.
According to the report by property consultancy ANAROCK, overall gross leasing across the top seven cities reached approximately 42.6 million sq. ft. in H1 2026, with GCCs continuing to anchor demand — particularly in southern technology hubs.
GCC Share Rises Year-on-Year
GCCs have expanded their footprint meaningfully compared to the same period last year. In H1 2025, GCCs accounted for 41 per cent of total gross leasing, having absorbed nearly 15.78 million sq. ft. Their share climbing to 45 per cent in H1 2026 — on a higher base of 19.2 million sq. ft. — signals an accelerating structural shift rather than a cyclical uptick.
Southern Cities Lead Absorption
Bengaluru remained the standout market, with GCCs accounting for 70 per cent of the city's roughly 10.8 million sq. ft. of total absorption. Chennai followed at 55 per cent of its 3.2 million sq. ft., while Hyderabad recorded a 48 per cent GCC share of its 6.4 million sq. ft. Together, Bengaluru and Hyderabad alone accounted for approximately 13.47 million sq. ft. — or 49 per cent — of net leasing in the first half.
Notably, Bengaluru recorded a 26 per cent annual rise in net absorption to about 8.27 million sq. ft., while Hyderabad saw a 24 per cent increase to nearly 5.2 million sq. ft.
What the ANAROCK Report Said
'India's Grade A office market remained steady in H1 2026. Even as global businesses stayed selective on expansion, India continued to attract occupiers looking to consolidate higher-value functions in established office markets,' the report noted.
Anuj Puri, Chairman of ANAROCK Group, said: 'This trend points to a structural shift in India's office market. This is not a short-term demand spike — MNCs are increasingly expanding India-based GCCs to house core functions such as engineering, R&D, AI, finance, cybersecurity, and digital operations.' He added that India's deep talent base, operating efficiency, and mature office ecosystem are the primary draws for multinational corporations.
Market Tightening as Vacancies Fall
With demand continuing to outpace fresh supply, vacancy levels across the top seven cities softened to 15 per cent in H1 2026, down from 16.3 per cent in H1 2025. Grade A net office absorption reached 27.44 million sq. ft., up 2 per cent year-on-year from 26.8 million sq. ft. in the corresponding period last year.
The tightening vacancy environment, combined with sustained GCC-led demand, is expected to keep pressure on prime office rents in Bengaluru and Hyderabad through the second half of 2026.
Point of View
AI, and cybersecurity functions to India (not just support roles), the demand profile has fundamentally changed from what drove India's first office boom. The risk is supply: vacancy is tightening fast in Bengaluru and Hyderabad, and if Grade A completions lag, rent escalation could erode the cost arbitrage that makes India attractive in the first place. That is the contradiction at the heart of this data — GCC growth is its own biggest structural threat if the market cannot keep pace.
NationPress
17 Jul 2026
Frequently Asked Questions
What share of India's office leasing did GCCs account for in H1 2026?
GCCs accounted for 45 per cent of India's gross office leasing in H1 2026, having absorbed approximately 19.2 million sq. ft. across the country's top seven cities, according to ANAROCK data. This is up from a 41 per cent share in H1 2025.
Which cities saw the highest GCC office absorption in H1 2026?
Bengaluru led with GCCs taking 70 per cent of its roughly 10.8 million sq. ft. of total absorption. Chennai recorded a 55 per cent GCC share of its 3.2 million sq. ft., and Hyderabad saw GCCs account for 48 per cent of its 6.4 million sq. ft.
How did India's overall office leasing perform in H1 2026?
Overall gross leasing across India's top seven cities reached approximately 42.6 million sq. ft. in H1 2026. Grade A net absorption came in at 27.44 million sq. ft., up 2 per cent year-on-year from 26.8 million sq. ft. in H1 2025.
What functions are MNCs housing in India-based GCCs?
According to ANAROCK Group Chairman Anuj Puri, MNCs are using India-based GCCs for core functions including engineering, R&D, artificial intelligence, finance, cybersecurity, and digital operations — a significant upgrade from traditional back-office roles.
What is happening to office vacancy rates in India?
Office vacancy across India's top seven cities fell to 15 per cent in H1 2026, down from 16.3 per cent in H1 2025, as demand continued to outpace fresh supply. The tightening market is particularly pronounced in Bengaluru and Hyderabad.
