India's Leap Towards Sustainable & Innovative Workspace Design
- Industry News
- March 13, 2024

India’s office market is seeing occupiers take a more measured approach to large leasing decisions. Geopolitical uncertainty, artificial intelligence, and evolving workforce models are influencing space strategies, while GCCs continue to drive demand. Flexible workspaces are emerging as a bridge to expansion, keeping the market resilient despite longer decision-making cycles.
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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.
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Large office transactions contributed 59% of India’s total office leasing during H1 2026, according to Knight Frank. Demand from multinational companies, Global Capability Centres (GCCs) and technology firms continues to drive the market, encouraging developers to deliver premium Grade A office spaces with sustainability, flexibility and future-ready infrastructure.
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Manufacturing companies have emerged as the biggest growth driver in India’s office market, contributing 41.7% of office leasing through GCCs in H1 2026. Rising investments in AI, engineering, and R&D have supported demand for Grade A office space, keeping vacancy rates at a five-year low despite a slight market slowdown.
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India’s office market recorded a historic 43 million sq. ft. of gross leasing in H1 2026, up 5% year-on-year despite global uncertainty. GCCs and flexible workspace operators led demand, while lower new supply pushed vacancy to post-pandemic lows, strengthening rental growth and reinforcing confidence in India’s commercial real estate sector.
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Global companies led India’s office leasing activity in 2025, accounting for nearly 60% of total demand across major cities, according to JLL. Strong GCC expansion, a deep talent pool, and competitive rental rates drove leasing to a record 83.3 million sq ft, with Bengaluru emerging as the top destination.
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