India’s office market kicked off 2026 on a robust note, with global capability centres (GCCs) leasing a record 9.1 million sq. ft in the January–March quarter, marking the highest-ever quarterly absorption by GCCs, according to a report by CBRE South Asia Pvt. Ltd. 

The broader office market also recorded its strongest first quarter on record, with gross leasing touching around 20.7 million sq. ft, up 5% from 19.7 million sq. ft in Q1 2025. 

GCCs drive demand 

GCCs contributed 44% of total office absorption during the quarter, underscoring their growing dominance in India’s commercial real estate landscape. American companies led the activity, accounting for 73% of total GCC leasing. 

Sector-wise, demand was driven by e-commerce (24%), BFSI (20%), technology (20%), and research, consulting & analytics (19%). 

Anshuman Magazine said the record leasing highlights India’s emergence as a preferred global hub for high-value capability functions. Demand is increasingly broad-based, spanning sectors and driven not just by large multinationals but also by mid-market and smaller GCCs. 

Rise of mid-market and nano GCCs reshaping demand 

The report noted a shift in the GCC ecosystem, with mid-market and “nano” GCCs gaining prominence. Mid-sized centres are evolving into transformation hubs handling end-to-end global operations in areas such as fintech, SaaS, and digital engineering. 

At the same time, smaller GCCs are emerging as agile innovation units focused on AI prototyping and niche R&D, often leveraging managed and flexible workspace formats for faster expansion. 

This diversification is expanding the occupier base and boosting demand for both premium office spaces and high-spec managed environments. 

Bengaluru leads; premium spaces in demand 

Among cities, Bengaluru led GCC leasing with a 48% share, followed by Hyderabad (19%) and Delhi-NCR (14%). 

GCCs showed a strong preference for high-quality assets, with 83% of leasing concentrated in green-certified tech parks and 78% in buildings less than 10 years old. 

At the overall market level, Bengaluru also topped office leasing with a 29% share, followed by Delhi-NCR (22%) and Mumbai (16%). These three cities together accounted for about 67% of total absorption. 

Around 79% of total leasing, equivalent to 16.3 million sq. ft, was in green-certified buildings while nearly 70% of transactions were in relatively newer assets. 

Flex operators, tech firms key contributors 

Flexible workspace operators and technology companies together accounted for nearly 40% of total leasing activity. Domestic firms led demand for flexible spaces while US-based corporations drove leasing in technology and BFSI segments. 

Ram Chandnani noted that occupier demand is becoming more diversified across cities and sectors, with a clear preference for amenity-rich, sustainable workplaces. 

Outlook remains strong 

India’s total office stock is projected to cross 1 billion sq. ft in 2026, supported by new supply in key markets such as Bengaluru, Hyderabad, and Delhi-NCR. 

GCCs are expected to continue expanding aggressively, with established centres increasingly taking up large spaces exceeding 100,000 sq. ft in premium tech parks, indicating sustained leasing momentum through the year.