Large office deals account for 59% of India's office leasing in H1 2026: Knight Frank India
Mumbai, July 25
Large office transactions continued to dominate India's commercial office leasing market in the first half of 2026, accounting for 59 per cent of the total office space leased across the country's eight major cities, according to a Knight Frank India research release.
The report said office transactions involving spaces of 100,000 sq ft and above totalled 28.2 million sq ft during H1 2026, out of the overall office leasing volume of 48.0 million sq ft.
According to the Knight Frank India research release, "Large office transactions contributed 59% of the total office leasing volume of 48.0 mn sq ft, underscoring the continued preference of large occupiers for Grade A office assets."
Bengaluru remained the country's largest office leasing market for large-format transactions, recording 10.1 million sq ft of leasing in office spaces exceeding 100,000 sq ft during H1 2026. Such deals accounted for 72 per cent of the city's total office leasing activity.
Hyderabad and the National Capital Region (NCR) followed with 4.9 million sq ft each in large office leasing, while Mumbai recorded 3.1 million sq ft. Large transactions accounted for 65 per cent of Hyderabad's leasing, 68 per cent of NCR's and 42 per cent of Mumbai's total office absorption, the report said.
Among the major office markets, Hyderabad emerged as the fastest-growing destination for large occupiers. Leasing of office spaces above 100,000 sq ft rose 63 per cent year-on-year, increasing from 3.0 million sq ft in H1 2025 to 4.9 million sq ft in H1 2026, according to the report.
Commenting on the trend, 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."
He 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. The sustained dominance of large office leasing reinforces India's position as a leading global business destination."
The report also noted that mid-sized office transactions, covering spaces between 50,000 sq ft and 100,000 sq ft, stood at 9.0 million sq ft during H1 2026, accounting for 19 per cent of total leasing activity. Leasing in smaller office spaces below 50,000 sq ft totalled 10.8 million sq ft, contributing 22 per cent of overall office transactions during the period.
— ANI
Reader Comments
Interesting data point, but I wonder about the impact on smaller businesses. With big companies grabbing 59% of the space, are startups and SMEs getting priced out of Grade A offices? 🤔
This is a double-edged sword bhai. On one hand, it shows global confidence in India's economy. On the other hand, these huge offices will need massive infrastructure - roads, metro, power. Hope the cities are ready for the pressure! 💪🇮🇳
Happy to see NCR doing well too. Gurgaon and Noida have really transformed into proper business hubs. But please, someone fix the traffic situation around Cyber City and Sector 62! 😅
As someone working in a GCC in Bengaluru, I can confirm the quality of these spaces is world-class. But the 72% share is concerning - too much concentration in one city. Hope tier-2 cities also get some love for diversification.
Knight Frank always provides solid data. But I'd like to see more granularity - which sectors are driving this? IT vs BFSI vs manufacturing? That would give a clearer picture of the economic trends. Still, good news overall for the real estate sector! 📈
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