India's commercial office market recorded its strongest-ever half-year performance during January-June 2026, with gross office leasing touching a record 45.5 million square feet across the country's nine leading cities. According to a CBRE report, leasing activity grew by around 10% compared with the same period last year, reflecting sustained demand from multinational corporations, Global Capability Centres (GCCs) and flexible workspace operators. The milestone highlights the resilience of India's office market despite ongoing global geopolitical and economic uncertainties.
The report also noted that developers delivered approximately 32 million sq ft of new office supply during the first half of 2026, making it the highest supply recorded for any January-June period. Strong occupier demand, combined with healthy supply additions, indicates continued confidence among both developers and corporate occupiers in India's commercial real estate sector.
GCCs Continue to Drive Office Demand
Global Capability Centres (GCCs) remained the biggest driver of leasing activity, accounting for 43% of total office absorption during the first half of 2026. The number of GCC transactions increased by nearly 30% year-on-year, while leasing by GCCs reached a record 10.3 million sq ft during the April-June quarter alone. India's skilled workforce, competitive operating costs and mature office ecosystem continue to attract multinational companies expanding their technology, engineering, finance and business support operations.
Also Read: Prestige Group Pre-Leases 1.2 Mn Sq Ft to HSBC
Flexible Workspaces See Strong Growth
Flexible workspace operators emerged as the largest occupier category during the second quarter, contributing 27% of total leasing activity. Co-working and managed office providers leased approximately 11.1 million sq ft during the first half of the year, compared with 7.7 million sq ft in the corresponding period of 2025. Businesses continue to adopt flexible office strategies to improve operational agility while managing occupancy costs more efficiently.
Record Quarterly Performance Across Major Cities
The April-June quarter also marked the strongest quarterly performance on record, with office leasing reaching 24.6 million sq ft, an increase of 18% over the previous quarter and 14% year-on-year. New office supply during the quarter touched an all-time high of 21 million sq ft, while transactions involving spaces larger than 200,000 sq ft increased by 57% compared with the previous quarter. Bengaluru, Hyderabad and Pune together accounted for nearly 68% of these large-format transactions.
Also Read: Ola Renews 4.27 Lakh Sq Ft Bengaluru Office Lease
Bengaluru Leads India's Office Market
Bengaluru retained its position as India's largest office leasing market, accounting for 27% of total leasing activity during the April-June quarter. Together, Bengaluru, Pune and Delhi-NCR contributed nearly 58% of quarterly office absorption. The report also highlighted growing preference for sustainable commercial developments, with nearly 76% of newly completed office space during the quarter comprising green-certified buildings located within integrated business parks.
- Total office leasing (H1 2026): 45.5 million sq ft
- Year-on-year growth: Around 10%
- New office supply: 32 million sq ft
- Q2 leasing: 24.6 million sq ft
- GCC share of leasing: 43%
- Flexible workspace share (Q2): 27%
- Leading market: Bengaluru
Positive Outlook for Commercial Real Estate
CBRE expects office leasing momentum to remain strong through the rest of 2026, supported by continued GCC expansion, increasing adoption of flexible workspaces and sustained demand for premium Grade A office assets. With record leasing, healthy new supply and rising interest from Fortune 500 companies, India's commercial real estate market continues to reinforce its position as one of the world's fastest-growing office destinations.
Enjoyed this update? Visit PropTech Pulse for more real estate news, investment insights, and property market trends.
