India’s office leasing grew 7% year-on-year to 41.6 million sq. ft. during the first half of 2026, according to Savills India. Strong demand from GCCs, technology firms, BFSI, and flexible workspace operators, combined with balanced office supply, continues to strengthen the country’s commercial real estate market despite global uncertainties.
India’s commercial office market maintained its upward momentum during the first half of 2026, recording 41.6 million square feet of gross leasing, a 7% increase compared to the same period last year, according to the Savills India H1 2026 Office Market Report. The report highlights the resilience of occupier demand despite ongoing geopolitical tensions and global macroeconomic uncertainty, reinforcing India’s position as one of the world’s strongest office leasing markets. Continued corporate expansion, growing institutional confidence, and the evolution of workplace strategies have kept demand for premium office assets on a steady growth path.
GCCs, Technology Firms and Flex Operators Lead Market Activity
The office leasing market continued to be driven by a diverse mix of occupiers, including technology companies, Global Capability Centres (GCCs), engineering and manufacturing firms, banking and financial institutions, and flexible workspace operators. These sectors accounted for a significant share of office absorption as businesses expanded operations, consolidated workspaces, and established new facilities across major metropolitan markets.
The report states that “occupier demand remained resilient despite ongoing geopolitical tensions and global macroeconomic uncertainties, reinforcing India’s position as one of the world’s leading office leasing destinations.” The increasing participation of multiple industries also reflects a more balanced commercial real estate market, reducing dependence on any single sector while strengthening long-term leasing activity.
Bengaluru Retains Leadership as Major Cities See Healthy Demand
Bengaluru remained the country’s largest office leasing market during H1 2026, supported by continued expansion from technology companies and multinational corporations. Other major commercial hubs, including Hyderabad, Mumbai, Delhi-NCR, Chennai, and Pune, also recorded healthy leasing volumes, highlighting widespread occupier confidence across India’s top office markets.
Demand continued to concentrate around premium Grade A office developments located in established business districts. These high-quality commercial assets remain the preferred choice for domestic enterprises and multinational occupiers seeking modern infrastructure, efficient workspaces, and strong connectivity.
Flexible Workspaces Continue to Expand Their Market Share
Flexible workspace operators remained one of the strongest contributors to office leasing activity during the first half of the year. Managed office providers continued leasing large office spaces to meet the changing workplace requirements of startups, multinational companies, and enterprises embracing hybrid work models.
The report notes that “managed office providers continued to lease significant volumes of office space to meet evolving workplace requirements of both large corporations and startups seeking operational flexibility.” As businesses increasingly adopt flexible leasing strategies, coworking and managed office providers continue to strengthen their role within India’s commercial office ecosystem.
Meanwhile, developers maintained a disciplined approach to new office supply. Fresh Grade A completions remained aligned with occupier demand, preventing significant oversupply while helping maintain stable vacancy levels and rental performance across key commercial corridors.
Positive Outlook for the Rest of 2026
India’s office market is expected to remain on a stable growth trajectory through the remainder of the year. The report points to continued GCC expansion, sustained corporate hiring, infrastructure upgrades, and increasing institutional investment as the primary factors supporting future demand.
Beyond the technology sector, industries such as manufacturing, engineering, life sciences, consulting, and financial services are also expanding their office footprints, creating a more diversified occupier base. With strong economic fundamentals, improving metro connectivity, and rising demand for premium workspaces, India’s commercial real estate sector remains well-positioned for long-term growth, further strengthening its status as a global office leasing destination.
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