GCCs account for 45% of office leasing in H1 2026 as India's Grade A office leasing hits 42.6 million sq. ft: Anarock

India's Grade A office market remained on a firm footing in the first half of 2026, with Global Capability Centres (GCCs) cementing their position as the biggest occupiers of commercial real estate. GCCs leased 19.2 million sq. ft.—45% of the total 42.6 million sq. ft. of gross office leasing across the country's top seven cities during H1 2026, up from a 41% share, or 15.78 million sq. ft., in the corresponding period last year, according to a research report by Anarock

The rise in GCC activity came even as developers moderated fresh supply. Net Grade A office absorption increased 2% year-on-year to 27.44 million sq. ft., while new office completions fell 10% to 22.15 million sq. ft. The favourable demand-supply balance helped reduce vacancy levels to 15% from 16.3% a year earlier and pushed average office rentals 9% higher to ₹96 per sq. ft. from ₹88 per sq. ft., underscoring the resilience of India's commercial real estate market.

GCCs drive India's office leasing momentum

"This trend points to a structural shift in India's office market. This is not a short-term demand spike—MNCs are increasingly expanding India-based GCCs to house core functions such as engineering, R&D, AI, finance, cybersecurity, and digital operations. They are drawn by India's deep talent base, operating efficiency, and mature office ecosystem—factors that will continue to drive both GCC and regular CRE absorption in the years to come," said Anuj Puri, chairman, ANAROCK Group.

Southern India remained the epicentre of GCC expansion. Bengaluru led the market with gross office leasing of 10.8 million sq. ft., of which GCCs accounted for 70%, or about 7.55 million sq. ft. Chennai followed, with GCCs contributing 55% of its 3.2 million sq. ft. leasing, while Hyderabad recorded a 48% GCC share of its 6.4 million sq. ft. gross absorption.

Bengaluru, Hyderabad power leasing; vacancy tightens

Bengaluru and Hyderabad together accounted for nearly half of India's net office leasing in H1 2026, clocking 8.27 million sq. ft. and 5.2 million sq. ft., respectively. Net absorption in Bengaluru grew 26% year-on-year, while Hyderabad posted a 24% increase. In contrast, the National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR) witnessed annual declines of 15% and 4%, respectively.

The tightening demand-supply equation also strengthened market fundamentals. Vacancy declined across all seven major office markets, with Bengaluru's vacancy easing to 10.8% from 12.4%, while Hyderabad's dropped to 23.5% from 26.6%, although it continued to have the highest vacancy among the top seven cities. NCR's vacancy also improved to 20.75% from 22.2%.

Selective supply supports rental growth

"The moderation in new office supply reflects a more calibrated market rather than any underlying weakness. Developers have remained selective in bringing new stock to market, aligning supply more closely with occupier demand and supporting a healthier balance between leasing activity, vacancies, and rentals," Puri said.

Beyond GCCs, demand broadened across sectors. IT/ITeS remained the largest occupier segment at 26%, closely followed by flexible workspace operators at 25%, while BFSI, manufacturing and industrial occupiers continued to expand their office footprint, highlighting the increasingly diversified nature of India's commercial real estate demand.