India office leasing hits record 43 MSF in H1 2026, GCCs surge 38%
Synopsis
India's office market just broke its own record — 43 MSF of gross leasing in the first half of 2026, powered by a 38% surge in GCC demand and a 55% leap in flexible workspace uptake. With Bengaluru leading at 5.36 MSF and BFSI and manufacturing diversifying the occupier base, this is no longer just an IT-driven story.
Key Takeaways
India's office market recorded its highest-ever H1 gross leasing volume of nearly 43 MSF in H1 2026 , up 5 per cent year-on-year.
Global Capability Centres (GCCs) leased approximately 16.5 MSF , a 38 per cent YoY surge, accounting for 38 per cent of total leasing.
Bengaluru led GCC demand at 5.36 MSF , followed by Pune (3.01 MSF) , Delhi-NCR (2.37 MSF) , and Mumbai (2.23 MSF) .
Flexible workspace operators hit a record 8.4 MSF — up 55 per cent YoY — representing one-fifth of total leasing activity.
IT-BPM led sectoral demand at 22 per cent , with BFSI at 19 per cent and Engineering & Manufacturing at 16 per cent .
Net absorption moderated due to lower supply additions and constrained availability of new Grade-A space.
India's office market posted its highest-ever first-half gross leasing volume in H1 2026, with total activity reaching nearly 43 million square feet (MSF) — a 5 per cent year-on-year increase — as demand from Global Capability Centres (GCCs) surged 38 per cent, according to a report by real estate consultancy Cushman & Wakefield released on 5 July 2026. The numbers reflect resilient occupier appetite despite persistent global macro uncertainties.
GCCs Lead the Charge
Global Capability Centres leased approximately 16.5 MSF during the first half of the year, accounting for 38 per cent of total leasing activity and marking a near 38 per cent year-on-year jump. The momentum held through the second quarter, with GCC occupiers transacting close to 8 MSF in Q2 2026 alone — contributing 37 per cent of overall office leasing during the quarter. This reinforces India's standing as a preferred global hub for capability and technology operations.
City-by-City Breakdown
Bengaluru retained its position as India's largest GCC market, recording 5.36 MSF of leasing activity. Pune followed with 3.01 MSF, while Delhi-NCR posted 2.37 MSF and Mumbai witnessed 2.23 MSF of occupier demand. Together, these four cities accounted for nearly 80 per cent of total GCC leasing in the first half. The overall Q2 tally across the top eight cities stood at approximately 21 MSF.
Sectoral Diversification Deepens
Occupier demand continued to diversify across sectors in H1 2026. IT-BPM remained the single largest contributor with a 22 per cent share of leasing activity. Banking, Financial Services and Insurance (BFSI) and Engineering & Manufacturing strengthened their presence, accounting for 19 per cent and 16 per cent of demand respectively — signalling that India's office market is no longer solely an IT story.
Flexible Workspaces Hit a New High
Flexible workspace operators recorded their highest-ever half-yearly volume, leasing 8.4 MSF — one-fifth of total office leasing activity in H1 2026. This marks a 55 per cent year-on-year increase, underscoring the structural shift toward agile work arrangements among both large enterprises and mid-market occupiers.
Supply Constraints Weigh on Net Absorption
The Cushman & Wakefield report noted a moderation in net absorption during the period, attributed largely to lower supply additions and constrained availability of new Grade-A space. This supply-demand mismatch, analysts say, is likely to keep vacancy rates tight and put upward pressure on rentals in premium micro-markets through the second half of the year.
With GCC pipelines remaining robust and flexible workspace operators expanding aggressively, India's office market is on course for a record full-year leasing volume in 2026 — provided fresh supply can keep pace.
Point of View
But also a vulnerability if multinational capex cycles turn. The 55 per cent surge in flexible workspace uptake is equally telling: large occupiers are hedging on long-term commitments even as they expand footprints. The real pressure point is supply — with net absorption moderating not because demand is soft but because Grade-A space pipelines haven't kept up. If that gap persists into H2, rental inflation in Bengaluru and Pune micro-markets could become a cost headwind for the very GCCs driving this boom.
NationPress
4 Jul 2026
Frequently Asked Questions
What was India's office leasing volume in H1 2026?
India's office market recorded nearly 43 million square feet (MSF) of gross leasing volume in H1 2026, its highest-ever first-half total and a 5 per cent increase over the same period in 2025, according to a Cushman & Wakefield report.
Why did GCC demand surge in India's office market?
Global Capability Centres leased approximately 16.5 MSF in H1 2026 — a 38 per cent year-on-year jump — driven by multinationals expanding technology and operations hubs in India. GCCs accounted for 38 per cent of all office leasing activity during the period.
Which city led GCC office leasing in India in 2026?
Bengaluru led all cities with 5.36 MSF of GCC leasing in H1 2026, retaining its position as India's largest GCC market. Pune (3.01 MSF), Delhi-NCR (2.37 MSF), and Mumbai (2.23 MSF) followed, with these four cities collectively accounting for nearly 80 per cent of GCC demand.
How did flexible workspace operators perform in H1 2026?
Flexible workspace operators recorded their highest-ever half-yearly leasing volume at 8.4 MSF, a 55 per cent year-on-year increase, representing one-fifth of total office leasing activity in H1 2026.
Why did net absorption moderate despite strong leasing volumes?
Net absorption moderated primarily due to lower supply additions and constrained availability of new Grade-A office space during H1 2026, according to the Cushman & Wakefield report. Strong demand outpacing supply is expected to keep vacancy tight and push rentals higher in key micro-markets.
