India office leasing hits 37.9 mn sq ft in H1 2026, GCCs lead surge
Synopsis
India's office market is quietly breaking records in 2026 — net absorption hit a decade-high of 26.9 million sq. ft. in just six months, and GCCs have already leased 15.8 million sq. ft., putting them on course to beat last year's all-time high. With Bengaluru anchoring global demand and domestic occupiers at a nine-quarter peak, India's commercial real estate story is accelerating, not plateauing.
Key Takeaways
India's office market recorded gross leasing of 37.9 million sq. ft. in H1 2026 , signalling continued resilience.
GCCs leased 15.8 million sq. ft. in H1 2026 — a 41.7% share — and are on track to surpass 2025's record.
Net absorption for H1 2026 reached a decade-high of 26.9 million sq. ft.
Q2 2026 gross leasing hit 16.45 million sq. ft. , led by tech ( 28.8% ) and flex operators ( 28.4% ).
Bengaluru led all cities with 24.6% of Q2 leasing and 31.6% of foreign-occupier activity.
Domestic occupiers' share rose to 47.3% in Q2 — the highest in nine quarters .
India's office market recorded resilient gross leasing of 37.9 million sq. ft. in the first half of 2026, with Global Capability Centres (GCCs) already on course to match or exceed last year's record absorption levels, according to a report released on Tuesday, 14 July 2026 by property consultancy JLL. The data underscores India's consolidating position as the world's largest GCC ecosystem.
Q2 2026 Leasing Breakdown
Gross leasing in Q2 2026 reached 16.45 million sq. ft., with the tech sector commanding the largest share at 28.8%, driven predominantly by global firms expanding their India footprint. Flex operators followed closely with a 28.4% share, while manufacturing and industrial occupiers accounted for 10.8% and BFSI for 10.2%.
Notably, domestic occupiers saw their share of quarterly leasing climb to 47.3% — the highest in the last nine quarters — buoyed by strong activity from flex operators.
GCCs on Track to Break Records
GCCs leased 15.8 million sq. ft. in H1 2026 alone, accounting for a 41.7% share of total leasing activity. Radha Dhir, Chief Executive Officer, India, JLL, described this as a structural shift: 'With 41.7 per cent share of leasing activity and on track to surpass 2025's record with 15.8 million sq. ft already leased in H1 2026, we have seen a strategic shift in the sector.'
The JLL report noted that ongoing space discussions and new entrants planning to establish centres in India during the year could push GCC absorption beyond the 2025 benchmark before year-end.
Bengaluru Leads, Net Absorption at Decade High
Bengaluru retained its position as India's top office destination, capturing 24.6% of Q2 gross leasing and a 31.6% share of all leasing by foreign occupiers in the quarter. Delhi NCR, Pune, and Chennai followed in that order.
Net absorption for H1 2026 hit a decade-high of 26.9 million sq. ft., reflecting rapid headcount expansion by occupiers who have placed India at the centre of their long-term growth strategies.
Market Signals and What Comes Next
The JLL report characterised India's office market as demonstrating increasing maturity, with global occupiers taking a measured approach amid AI-driven business transformation and evolving geopolitical dynamics. Companies are reportedly using Q2 2026 to right-size portfolios and align headcount projections with long-term targets rather than making speculative acquisitions.
With the second half of 2026 still ahead and a strong pipeline of GCC entrants in discussion, the full-year leasing figure could comfortably surpass the 2025 record — a milestone that would cement India's standing as the default destination for global capability buildouts.
Point of View
But the rise of domestic occupiers to a nine-quarter high suggests the demand base is broadening beyond foreign tech giants. The risk to watch: if AI-driven workforce rationalisation accelerates globally, GCC headcount projections could be revised downward mid-cycle, leaving some of that absorbed space underutilised sooner than landlords expect.
NationPress
14 Jul 2026
Frequently Asked Questions
How much office space was leased in India in H1 2026?
India's office market recorded gross leasing of 37.9 million sq. ft. in the first half of 2026, according to a JLL report released on 14 July 2026. Net absorption for the same period hit a decade-high of 26.9 million sq. ft.
What is the GCC leasing figure for H1 2026?
Global Capability Centres leased 15.8 million sq. ft. in H1 2026, representing a 41.7% share of total leasing activity. JLL noted they are on track to match or surpass 2025's record levels, given ongoing space discussions and new entrants planning to set up centres in India.
Which city led office leasing in Q2 2026?
Bengaluru led gross leasing in Q2 2026 with a 24.6% share and accounted for 31.6% of all leasing by foreign occupiers in the quarter. Delhi NCR, Pune, and Chennai followed in that order.
What sectors drove Q2 2026 office leasing?
The tech sector led Q2 2026 leasing with a 28.8% share, driven largely by global firms. Flex operators followed at 28.4%, with manufacturing and industrial at 10.8% and BFSI at 10.2%.
Why is domestic occupier demand at a nine-quarter high?
Domestic occupiers captured 47.3% of Q2 2026 leasing — the highest in nine quarters — largely driven by strong activity from flex operators. This signals a broadening of India's office demand base beyond foreign multinationals and GCCs.
