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Office space leasing across India's nine major cities increased 10% year-on-year to a record 45.5 million sq ft during the first half of 2026, according to CBRE. The performance was driven by sustained demand from Global Capability Centres (GCCs) and flexible workspace operators despite global economic uncertainty. Gross leasing by GCCs rose to 19.6 million sq ft, while co-working operators leased 11.1 million sq ft during the period. New office supply reached 32 million sq ft, the highest ever recorded for the first half of a calendar year. CBRE said demand remained broad-based across occupier categories, with tenants continuing to prioritise high-quality, sustainable and flexible office spaces.
Office space leasing across nine major Indian cities rose 10% year-on-year to a record 45.5 million sq ft during the first half of 2026, supported by continued expansion by Global Capability Centres (GCCs) and growing demand for flexible workspaces, according to property consultant CBRE.
The consultancy reported that gross office leasing increased from 41.5 million sq ft in the corresponding period last year to 45.5 million sq ft during January-June 2026, marking the highest absorption recorded in any six-month period. New office supply during the period stood at 32 million sq ft, the highest ever recorded for the first half of a calendar year.
The data covers the office markets of Mumbai, Delhi-NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad and Kochi.
CBRE said leasing by GCCs increased to 19.6 million sq ft during the first half of the year from 16.8 million sq ft in the year-ago period, reflecting continued expansion by multinational companies establishing or growing their technology, engineering, finance and business support operations in India despite ongoing geopolitical and macroeconomic uncertainties.
Demand from flexible workspace operators also strengthened during the period. Co-working companies leased 11.1 million sq ft, compared with 7.7 million sq ft in the corresponding period last year, indicating continued adoption of managed office space by corporate occupiers seeking operational flexibility.
Commenting on the market performance, Anshuman Magazine, Chairman and Chief Executive Officer – India, South-East Asia, Middle East and North Africa at CBRE, said India's office sector continued to demonstrate resilience by delivering consecutive record quarters despite a volatile global economic environment. He added that GCCs were expanding their presence across the country while flexible workspace operators continued to scale operations in both established and emerging office markets. He further stated that the company expects the momentum to continue through the remainder of 2026, supported by strong market fundamentals and sustained occupier confidence.
Ram Chandnani, Managing Director, Leasing Services, India, CBRE, said demand remained resilient across cities, asset classes and occupier categories. He noted that occupiers were increasingly prioritising quality office developments, sustainability and workplace flexibility, as reflected in the growing adoption of flexible workspaces and continued preference for green-certified office assets. He also said the limited availability of investment-grade office supply relative to demand is expected to support rental growth across core office micro-markets in the coming quarters.
Industry participants also highlighted the continued strength of the office market. Arun Narayan, Co-Founder and Chief Growth Officer of BHIVE Workspace, said the sustained leasing momentum reinforced India's position as a global business destination. He added that Bengaluru's continued leadership in office leasing reflected its established business ecosystem, skilled workforce and growing attractiveness for GCCs.
Sijo Jose, Co-Founder and Director – Property Acquisition at SpazeOne, said managed workspaces were increasingly being adopted as a strategic real estate solution by occupiers. He added that demand for such spaces is expected to remain strong as businesses continue to pursue agile and scalable workplace strategies.
Source - PTI
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