India's office mkt posts record quarterly leasing on GCC, flex demand: CBRE

Gross office leasing touched a record 24.6 million sq ft in Q2 2026, with global capability centres and flexible space operators driving demand despite geopolitical uncertainties

India's office market recorded its strongest quarter in Q2 of calendar year 2026, with gross leasing touching an all-time high of around 24.6 million square feet (msf), according to real estate services and investments firm CBRE South Asia.

 

This comes despite the geopolitical tension in West Asia.

 

The total absorption (leasing) in the quarter increased 18 per cent quarter-on-quarter (Q-o-Q) and 14 per cent year-on-year (Y-o-Y). Supply rose by a sharper 91 per cent Q-o-Q and 18 per cent Y-o-Y to 21 msf.

 

Global capability centres (GCCs) continued to anchor demand in Q2, accounting for 42 per cent of the total office space take-up.

   

Leasing by these centres reached an all-time high of 10.3 msf during the quarter, marking a 10 per cent Q-o-Q rise.

 

Meanwhile, flexible space operators’ share stood at 27 per cent.

 

“The biggest driver of India’s performance is the availability of inputs and existing clients,” said Ram Chandnani, managing director (MD), leasing services, India, CBRE.

 

In the first half of 2026 (H1 2026), the sector recorded an absorption of 45.5 msf, the highest ever registered in any half-year period.

 

Supply during the period also totalled 32 msf, the highest ever seen in the first half of a calendar year.

 

“Despite all the noise around artificial intelligence (AI) and global uncertainties, the outlook for the year overall remains very positive. The only challenge is the availability of ready-to-move-in supply because buildings take time to complete. As a result, there will be a lot of pre-commitments, including in under-construction buildings, as occupiers are committing to future supply that is being developed,” Chandnani told Business Standard.

 

Flex, technology and banking, financial services and insurance (BFSI) firms together drove nearly 62 per cent of Q2 leasing and 58 per cent of H1 leasing. GCCs accounted for 43 per cent of the total demand in H1.

 

Anshuman Magazine, chairman and chief executive officer (CEO) — India, South-East Asia, Middle East & North Africa, CBRE, said, “This strength is broad-based from GCCs deepening their presence along with flexible space operators scaling 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.”

 

During the quarter, 6.8 msf of space was leased by Fortune 500 companies, accounting for a share of 28 per cent.

 

On the supply side, Bengaluru, Pune and Ahmedabad together contributed 73 per cent of Q2 supply and 72 per cent of H1 supply.

 

Bengaluru led the city-wise leasing with a share of 27 per cent in Q2. Bengaluru, Pune and Delhi-NCR accounted for a combined share of 58 per cent. In H1, the top three cities — Bengaluru, Delhi-NCR, and Mumbai — accounted for 61 per cent of the total absorption.

 

The average rent growth across the top six Indian cities was between 2 and 7 per cent in Q2.

 

“Rentals will continue to see a marginal increase because it is largely about product availability and quality of the product,” said Chandnani.

 

Looking ahead, CBRE expects GCCs to drive over 40 per cent of total space absorption in 2026, with flexible workspaces, technology-led demand and flight-to-quality preferences continuing to shape occupier strategy across India’s office markets.