India's office market across the top seven cities recorded a 6 per cent year-on-year growth in the first half of 2026, with total Grade A space uptake reaching 35.7 million square feet — holding firm despite a moderation in the second quarter, according to a Colliers India report released on 25 June 2026. Global Capability Centres (GCCs) are emerging as the dominant demand driver, projected to account for 40–50 per cent of all Grade A office absorption for the full year.

Q2 2026: Resilience Amid Global Headwinds

Grade A space uptake in Q2 2026 (April–June) came in at 17.4 million sq ft — a slight moderation from the strong first quarter, yet still the ninth consecutive quarter to record at least 15 million sq ft of absorption across the top seven markets. The sustained run underscores what analysts describe as the structural depth of India's commercial real estate sector.

Arpit Mehrotra, Managing Director, Office Services, India, Colliers, noted that the robust Q1 performance acted as a buffer. 'India's office market remained firm in the second quarter of the year. A strong first quarter in fact acted as a cushion, largely limiting the fallout of ongoing global crisis,' he said. This comes amid continued disruptions in global trade and broader macroeconomic uncertainty that have weighed on occupier decisions in several other Asia-Pacific markets.

Bengaluru Leads, Hyderabad Surges

Among individual markets, Bengaluru retained its position as India's top office destination, logging 10.5 million sq ft of leasing in H1 2026 — a 29 per cent share of total demand. Hyderabad emerged as the standout performer, recording approximately 7.2 million sq ft of leasing activity, which translates to roughly one-fifth of overall national demand and a 47 per cent annual rise in absorption — the sharpest growth rate among all major markets in the period.

Delhi NCR, Mumbai, and Chennai each recorded leasing activity in the range of 4–5 million sq ft during the first half of the year, reflecting broad-based demand rather than concentration in one or two hubs.

GCCs: The Structural Pillar

The Colliers report attributes much of the market's durability to India's entrenched position as the preferred destination for Global Capability Centres. Cost arbitrage, deep talent availability, and steady domestic economic growth continue to underpin occupier confidence. Vimal Nadar, National Director and Head of Research, Colliers India, said GCCs are likely to account for 40–50 per cent of Grade A office space uptake in 2026 — a figure that would represent a structural shift in the composition of demand compared to even five years ago.

Mehrotra added that India's 'established credibility as the most preferred GCC destination continues to support occupier expansion across most markets,' signalling that multinational technology and financial services firms are deepening, not merely maintaining, their India footprint.

What This Signals for the Second Half

With Q1 acting as a demand cushion and GCC pipelines reportedly robust, the market is broadly expected to sustain momentum into H2 2026. However, analysts caution that prolonged global trade disruptions or a sharper-than-expected slowdown in the US technology sector — a key source of GCC mandates — could temper absorption. The performance of Hyderabad and Bengaluru in the next two quarters will be closely watched as leading indicators of overall market health.