India's office leasing hits record 24.6 million sq. ft in Q2 as GCCs, flex operators fuel demand: CBRE
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India's office market posted its strongest-ever quarterly performance in the April-June period of 2026, with gross leasing touching a record 24.6 million square feet (sq ft) while developers simultaneously delivered an all-time high 21 million sq. ft of new office space, according to CBRE South Asia.
In its latest India Office Figures report for Q2 2026, the real estate consultancy said gross office absorption rose 18% quarter-on-quarter and 14% year-on-year, underscoring sustained occupier demand despite an uncertain global economic and geopolitical environment. Office supply grew at a faster pace, increasing 91% sequentially and 18% annually during the quarter.
The momentum also translated into a record first half of the calendar year. Office leasing reached 45.5 million sq. ft during January-June 2026, the highest ever recorded in any six-month period while new supply stood at 32 million sq. ft, marking the strongest first-half supply on record.
Flexible workspace operators emerged as the largest occupier segment in Q2, accounting for 27% of total leasing activity. Together, flexible workspace providers, technology companies and banking, financial services and insurance (BFSI) firms contributed nearly 62% of leasing during the quarter and 58% in the first half of the year.
Global Capability Centres (GCCs) continued to anchor office demand, accounting for 42% of total leasing in Q2 and 43% during the first half of 2026. GCC leasing reached an all-time high of 10.3 million sq. ft in the quarter, up from 9.3 million sq. ft in the preceding quarter.
Large office transactions also gathered pace, with deals exceeding 200,000 sq. ft increasing 57% quarter-on-quarter, led by flexible workspace operators and technology companies. Bengaluru, Hyderabad and Pune together accounted for 68% of these large-format transactions.
"India's office market continues to demonstrate its structural depth and resilience, delivering back-to-back record quarters even as the world navigates a volatile geopolitical and economic backdrop," said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & North Africa, CBRE.
"This strength is broad-based. GCCs are deepening their footprint while flexible space operators are scaling rapidly across gateway and emerging cities alike. We expect this momentum, anchored by strong fundamentals and sustained occupier confidence, to continue through the rest of 2026," he added.
Fortune 500 companies leased 6.8 million sq ft during the quarter, accounting for 28% of total office absorption.
On the supply side, developers continued to focus on quality and sustainability. Around 76%, or 16 million sq ft, of the office space completed during the quarter was green-certified, while 74% was located within integrated technology parks. Bengaluru, Pune and Ahmedabad together contributed 73% of new supply in Q2 and 72% of completions during the first half of the year.
Bengaluru retained its position as the country's largest office market, accounting for 27% of leasing activity in Q2. Bengaluru, Pune and Delhi-NCR together contributed nearly 58% of total leasing during the quarter. During the first half of 2026, Bengaluru, Delhi-NCR and Mumbai accounted for about 61% of overall office absorption.
Delhi-NCR recorded its highest-ever quarterly leasing by flexible workspace operators, while Pune registered its strongest-ever quarter for overall office leasing, with flex operators driving much of the demand.
The report said the office market's robust performance was supported by India's resilient economic growth. The economy expanded 7.7% in FY2025-26, while the real estate sector, along with financial and professional services, grew by around 10.4% in the January-March quarter.
"The demand across cities, asset classes and occupier types remains resilient. Occupiers are prioritising quality, sustainability and flexibility in equal measure, reflected in the rapid adoption of flexible workspaces and the continued preference for green-certified assets. With investment-grade supply remaining tight relative to demand, we anticipate sustained rental appreciation across core micro-markets in the coming quarters," said Ram Chandnani, Managing Director, Leasing Services, India, CBRE.