Large office transactions accounted for 59 per cent of India's total office leasing volume of 48 million sq ft in the first half of 2026, according to a report by Knight Frank India released on Saturday, 25 July. The data underscores a sustained preference among large occupiers for Grade A office assets across the country's top commercial markets.

Scale of Large-Format Leasing

Transactions involving office spaces of over 1 lakh sq ft totalled 28.2 million sq ft across eight leading cities in H1 2026, the Knight Frank India report noted. The mid-sized segment — covering spaces between 50,000 and 1 lakh sq ft — contributed 9 million sq ft, or 19 per cent of overall office transactions during the same period.

Bengaluru Leads, Hyderabad Grows Fastest

Bengaluru retained its position as the country's largest market for big-format leasing, recording 10.1 million sq ft of large office space transactions — representing 72 per cent of the city's total office activity in the half-year period.

Hyderabad and the National Capital Region (NCR) each logged 4.9 million sq ft of large deals, contributing 65 per cent and 68 per cent respectively to their cities' overall absorption. Mumbai recorded 3.1 million sq ft of large leasing, accounting for 42 per cent of its total.

Among major office markets, Hyderabad emerged as the fastest-growing destination for large office occupiers. Leasing of spaces above 1 lakh sq ft in the city surged 63 per cent year-on-year — from 3 million sq ft in H1 2025 to 4.9 million sq ft in H1 2026 — with large transactions' share of Hyderabad's overall leasing mix expanding from 51 per cent to 65 per cent.

What the Industry Said

Viral Desai, International Partner and Senior Executive Director – Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets & Retail Agency at Knight Frank India, said: 'India's office market continues to witness strong demand from large occupiers, particularly Global Capability Centres, technology companies and multinational corporations expanding their operations.'

Desai added: 'While overall office leasing has remained resilient, markets such as Hyderabad, NCR, Mumbai and Pune have increased the share of large office transactions, reflecting occupiers' growing preference for high-quality, future-ready office assets.'

Why This Matters

The concentration of leasing in large-format deals signals a structural shift in India's commercial real estate market, where Global Capability Centres (GCCs), technology firms, and multinationals are consolidating footprints rather than fragmenting across smaller spaces. This comes amid a broader global trend of enterprises optimising real estate portfolios post-pandemic, with India increasingly positioned as a preferred destination for large-scale back-office and technology operations.

With Hyderabad's rapid year-on-year growth and NCR and Mumbai strengthening their large-deal shares, the competitive landscape among India's top office markets is intensifying. How secondary cities adapt to capture overflow demand will be a key development to watch in the second half of 2026.