India office leasing hits record 24.6 mn sq ft in Q2 2026, GCCs lead demand
Synopsis
India's office market has just posted its best quarter ever — and the numbers are not close. At 24.6 million sq ft of gross leasing and 45.5 million sq ft absorbed in H1 2026 alone, GCCs and flex operators are rewriting what peak demand looks like for Indian commercial real estate, even as global economic uncertainty clouds other asset classes.
Key Takeaways
India's office gross leasing hit an all-time high of approximately 24.6 million sq. ft. in Q2 2026 , per CBRE.
H1 2026 absorption reached a record 45.5 million sq. ft. — the highest ever in any half-year period.
GCCs accounted for 42% of Q2 2026 leasing, with GCC take-up alone hitting a record 10.3 million sq. ft.
Flexible space operators were the top occupier segment at 27% ; flex, tech, and BFSI together drove 62% of Q2 leasing.
Bengaluru led city-wise with a 27% share; Bengaluru, Pune, and Delhi-NCR combined for 58% of total leasing.
Large-format deals above 2 lakh sq. ft. surged 57% QoQ , led by flex operators and tech firms.
India's office market delivered its strongest quarter on record in Q2 2026 (April–June), with gross leasing touching an all-time high of approximately 24.6 million square feet, according to a report released on Monday, 7 July 2026 by real estate consulting firm CBRE South Asia Pvt. Ltd. Developers matched the surge in demand with a record 21 million sq. ft. of new completions in the same period.
Record Numbers Across the Board
Total absorption climbed 18 per cent quarter-on-quarter and 14 per cent year-on-year in Q2 2026. Supply growth was even sharper, rising 91 per cent QoQ and 18 per cent YoY, signalling that developers are moving decisively to keep pace with occupier appetite.
For the first half of 2026 taken together, the sector logged a historic absorption of roughly 45.5 million sq. ft. — the highest ever recorded in any half-year period — while supply reached a new record of approximately 32 million sq. ft.
Flex Operators and GCCs Drive the Momentum
Flexible space operators emerged as the single largest occupier segment in Q2 2026, accounting for 27 per cent of leasing activity. Flex, technology, and BFSI firms together drove nearly 62 per cent of Q2 2026 leasing and 58 per cent of H1 2026 leasing, underscoring the structural shift in how corporate India is occupying office space.
Global Capability Centres (GCCs) continued to anchor overall demand, accounting for 42 per cent of total office space take-up in Q2 2026 and 43 per cent in H1 2026. GCC leasing alone touched an all-time high of roughly 10.3 million sq. ft. during the quarter, up 10 per cent from approximately 9.3 million sq. ft. in Q1 2026. CBRE forecasts GCCs to drive over 40 per cent of total space absorption through the full year 2026.
Large-Format Deals and City-Wise Breakdown
Transactions above 2 lakh sq. ft. surged 57 per cent QoQ, led by flexible space operators and technology firms. Bengaluru, Hyderabad, and Pune together accounted for 68 per cent of all large-format transactions during the quarter.
City-wise, Bengaluru led leasing with a 27 per cent share in Q2 2026. Bengaluru, Pune, and Delhi-NCR combined for roughly 58 per cent of total leasing, reinforcing the dominance of these three markets even as emerging cities attract growing interest.
What Industry Leaders Said
Anshuman Magazine, Chairman and CEO — India, South-East Asia, Middle East and North Africa, CBRE, said: 'India's office market continues to demonstrate its structural depth and resilience, delivering back-to-back record quarters even as the world navigates a volatile geopolitical and economic backdrop.'
Magazine added: 'This strength is broad-based — GCCs are deepening their footprint while flexible space operators scale rapidly across gateway and emerging cities alike. We expect this momentum, anchored by strong fundamentals and sustained occupier confidence, to continue through the rest of 2026.'
What to Watch
With GCC expansion showing no signs of slowing and flex operators scaling into tier-2 cities, the outlook for H2 2026 remains constructive. The key variable, according to CBRE, is whether flight-to-quality preferences — occupiers gravitating toward Grade A assets — sustain the pipeline of large-format completions that underpinned the record supply numbers this quarter.
Point of View
Driven less by domestic consumption and more by multinationals deepening GCC bets and flex operators arbitraging the cost-quality gap. What mainstream coverage underplays is the supply side: a 91% QoQ jump in new completions means developers are now running ahead of even this elevated demand curve, which raises vacancy risk if GCC expansion moderates even slightly. The concentration of large-format deals in Bengaluru, Hyderabad, and Pune also masks how thin the market remains in tier-2 cities, where flex operators are expanding but anchor tenants are scarce. The real test for 2026's second half is whether flight-to-quality demand can absorb the record pipeline without pushing vacancy in secondary micro-markets to uncomfortable levels.
NationPress
6 Jul 2026
Frequently Asked Questions
What record did India's office market set in Q2 2026?
India's office market recorded an all-time high gross leasing of approximately 24.6 million sq. ft. in Q2 2026 (April–June), according to CBRE South Asia. This also contributed to a historic H1 2026 absorption of 45.5 million sq. ft. — the highest ever in any half-year period.
What role are GCCs playing in India's office demand?
Global Capability Centres (GCCs) accounted for 42% of total office space take-up in Q2 2026 and 43% in H1 2026, with GCC leasing alone hitting a record 10.3 million sq. ft. in the quarter. CBRE forecasts GCCs to drive over 40% of total absorption for the full year 2026.
Which cities led office leasing in Q2 2026?
Bengaluru led city-wise with a 27% share of Q2 2026 leasing. Bengaluru, Pune, and Delhi-NCR together accounted for roughly 58% of total leasing, while Bengaluru, Hyderabad, and Pune combined for 68% of all large-format transactions above 2 lakh sq. ft.
How significant was the supply increase in Q2 2026?
Developers completed a record 21 million sq. ft. of new office space in Q2 2026, representing a 91% jump quarter-on-quarter and 18% year-on-year. For H1 2026, total new supply reached a record approximately 32 million sq. ft.
Which sectors drove the most office leasing in Q2 2026?
Flexible space operators were the largest single occupier segment at 27% of Q2 2026 leasing. Flex, technology, and BFSI firms together drove nearly 62% of Q2 leasing and 58% of H1 2026 leasing, according to CBRE.
