Large office deals account for 59 pc of India's leasing in Jan-June: Report
New Delhi, July 25
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, underscoring continued preference from large occupiers for Grade A assets, a report said on Saturday.
The report from Knight Frank India said large office space transactions comprising offices with areas of over 1 lakh sq ft, totalled 28.2 million sq ft across eight leading cities in H1 2026.
Bengaluru remained the country's largest market for big‑format leasing, recording 10.1 million sq ft of large office space transactions, which represented 72 per cent of the city's total office activity.
Hyderabad and the National Capital Region each logged 4.9 million sq ft of large deals, contributing 65 per cent and 68 per cent respectively to their cities' overall absorption, while Mumbai recorded 3.1 million sq ft of large leasing, or 42 per cent of its total, the report added.
Among the major office markets, Hyderabad emerged as the fastest-growing destination for large office occupiers.
Leasing of spaces above 1 lakh sq ft rose 63 per cent YoY from 3 million sq ft in H1 2025 to 4.9 million sq ft in H1 2026, expanding the share of large transactions in the city's overall leasing mix from 51 per cent to 65 per cent.
"India's office market continues to witness strong demand from large occupiers, particularly Global Capability Centres, technology companies and multinational corporations expanding their operations," said Viral Desai, International Partner, Senior Executive Director - Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets & Retail Agency, Knight Frank India.
"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," he said.
Office leasing in the mid-sized segment, or spaces from 50,000- 1 lakh sq ft stood at 9 million sq ft during H1 2026, accounting for 19 per cent of overall office transactions.
— IANS
Reader Comments
I'm from Hyderabad and can see the transformation happening with my own eyes. Gachibowli and HITEC City are buzzing with new towers. But the traffic jams are becoming unbearable! 😅 Wish the authorities would plan better infrastructure to match this boom.
Interesting that NCR and Hyderabad both recorded 4.9 million sq ft. I work in Gurgaon and the office scene is definitely thriving, but rental costs are skyrocketing. The 68% share of large deals in NCR might be pushing out smaller players - that's concerning long-term.
Good news for the economy! Large deals mean more jobs and confidence in India's growth story. But I wonder about the 19% mid-segment - that's where many Indian companies operate. Hope they're not losing out on quality office space due to rising demand from MNCs. 👀
Someone please explain - how is this sustainable? Global recession fears are real, and India's office space absorption might cool off. The 63% YoY jump in Hyderabad large deals seems too good to be true. Are we building too much office space without future proofing?
As someone working in a GCC in Pune, I can confirm the trend. Our company just leased an entire floor in a Grade A building. The 'future-ready' assets being mentioned are great for productivity and employee well-being. But landlords need to keep rents reasonable - already paying through the nose! 💸
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