India's commercial office market maintained its growth momentum during the first half of 2026, with gross leasing across the country's six major cities increasing 7% year-on-year to 41.6 million sq ft, according to Savills India's H1 2026 Office Market Report. The report highlights 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 increase in leasing activity was driven by sustained expansion from technology companies, Global Capability Centres (GCCs), engineering and manufacturing firms, banking and financial institutions, and flexible workspace operators. These sectors continued to account for a significant share of office absorption as companies expanded their operations, consolidated workplaces and established new business centres across major metropolitan markets.
Bengaluru retained its leadership position in office leasing during the first six months of the year, supported by strong demand from technology companies and multinational corporations. Hyderabad, Mumbai, Delhi-NCR, Chennai and Pune also recorded healthy leasing volumes, reflecting broad-based occupier interest across India's principal commercial real estate markets. The report noted that business districts with high-quality Grade A office assets continued to attract the majority of leasing transactions.
Global Capability Centres remained among the strongest demand drivers, as multinational companies expanded their India operations to support engineering, research, technology, finance and business process functions. India's large skilled workforce, competitive operating costs and mature office ecosystem continued to strengthen its appeal as a preferred destination for multinational enterprises establishing or expanding GCC operations.
The report also highlighted the growing role of flexible workspace operators in supporting market activity. 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. Hybrid work models have encouraged many occupiers to adopt flexible leasing strategies while maintaining access to premium office locations.
On the supply side, developers continued to add new Grade A office stock across major cities, although new completions remained aligned with occupier demand to prevent significant oversupply. Market participants noted that disciplined development and sustained leasing activity have helped maintain relatively stable vacancy levels in key commercial districts while supporting rental stability in prime office corridors.
Industry experts believe India's office market has demonstrated considerable resilience despite global economic headwinds. Continued investments by multinational corporations, expansion of domestic enterprises and increasing institutional interest in commercial real estate have collectively strengthened market fundamentals. The steady pipeline of infrastructure improvements, metro connectivity and integrated business districts has also enhanced the attractiveness of established office micro-markets.
Beyond traditional technology occupiers, demand diversification has emerged as a defining trend during the first half of the year. Sectors including manufacturing, engineering, life sciences, consulting and financial services have increased their office footprint, reducing dependence on a single industry and contributing to more balanced leasing activity across cities.
Looking ahead, Savills expects India's office market to remain on a stable growth trajectory during the remainder of 2026, supported by healthy corporate expansion, continued GCC investments and sustained demand for premium office space. While global uncertainties may influence business sentiment, India's strong economic fundamentals, expanding corporate ecosystem and growing institutional investment are expected to support commercial real estate activity in the coming quarters.