India's office leasing hits record 24.6 million sq ft in Q2, flex operators and GCCs drive demand: Report
New Delhi, July 6
India's office market recorded its strongest-ever quarterly performance in the April-June period of 2026, with gross leasing touching an all-time high of around 24.6 million square feet, driven by strong demand from flexible workspace operators and Global Capability Centres, according to a report by CBRE.
The report said developers also delivered a record 21.0 million square feet of new office space during the quarter, making it the highest quarterly supply on record.
It stated, "India's office sector recorded its highest-ever quarterly absorption at ~24.6 million sq. ft. in April-June (Q2) 2026, up 18 per cent Q-o-Q and 14 per cent Y-o-Y".
According to the report, new supply rose even faster, registering a 91 per cent quarter-on-quarter increase and an 18 per cent year-on-year rise.
The first half of 2026 also marked the strongest six-month period on record for India's office market. Total office absorption reached around 45.5 million square feet, the highest ever recorded in any half-year period, while new supply stood at around 32.0 million square feet, the highest ever for the January-June period.
From a sectoral perspective, flexible workspace operators emerged as the largest occupier segment during the quarter, accounting for 27 per cent of total leasing activity.
The report said GCCs continued to anchor office demand, accounting for 42 per cent of total office space absorption in Q2 2026 and 43 per cent during H1 2026.
The report further noted that Fortune 500 companies leased 6.8 million square feet of office space during the quarter, accounting for 28 per cent of total office leasing.
On the supply side, 76 per cent, or around 16.0 million square feet, of new office completions in Q2 2026 were green-certified, while 74 per cent were located within integrated technology parks.
Among cities, Bengaluru led office leasing activity with a 27 per cent share in Q2 2026. Bengaluru, Pune and Delhi-NCR together accounted for around 58 per cent of quarterly absorption. During the first half of 2026, Bengaluru, Delhi-NCR and Mumbai together contributed around 61 per cent of total office absorption.
The report added that Delhi-NCR recorded its highest-ever quarterly flexible workspace leasing, while Pune posted its highest-ever quarterly office leasing, with both markets primarily driven by demand from flexible workspace operators.
Looking ahead, CBRE expects GCCs to account for more than 40 per cent of total office space absorption in 2026, with flexible workspaces, technology-led demand and preference for high-quality office assets continuing to shape India's office market.
— ANI
Reader Comments
I'm a bit concerned about all this new supply though. 21 million sq ft delivered in one quarter? That's a lot of new office space. Will all of it get filled? And with so much space being built, I hope we're not creating an oversupply situation like we saw in some IT corridors a few years ago. Need to be careful with planning.
Great to see flexible workspace operators taking 27% share! This hybrid work model is here to stay. As someone who works in a GCC here in Pune, I can confirm our office is always buzzing. And Pune posting its highest ever quarterly leasing? Waah! Proud moment for our city. 😊
Impressive numbers! As someone who moved from the US to work for a Fortune 500 company here in Delhi-NCR, I can see why these companies are leasing so much space. India's talent pool, infrastructure improvements, and cost-effectiveness are unmatched. The 6.8 million sq ft by Fortune 500 companies is proof that big players believe in India's future.
All this growth is good, but what about the impact on rental prices for common people? Commercial real estate booming means residential rents are skyrocketing in these tech hubs too. In Bengaluru, finding an affordable 1BHK near office parks is getting impossible. The government needs to ensure this growth translates to better infrastructure and affordable housing, not just higher profits for developers.
76% of new supply is green-certified? That's the real news here! 🇮🇳 It shows
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