Global capability centers (GCCs) leased approximately 19.2 million sq. ft. of office space in India’s top seven cities in the first half of 2026, making up 45% of the total leasing. This dominance continued as GCCs drove office space demand in the southern cities, contributing significantly to the overall gross leasing of about 42.6 million sq. ft.
GCCs saw a notable increase in their share from the previous year, accounting for 70% of Bengaluru’s 10.8 million sq. ft. absorption, 55% of Chennai’s 3.2 million sq. ft., and 48% of Hyderabad’s 6.4 million sq. ft. The ANAROCK report highlighted the steady performance of India’s Grade A office market in the first half of 2026, with MNCs showing interest in expanding GCCs for core functions like engineering, R&D, AI, finance, cybersecurity, and digital operations.
Anuj Puri, Chairman of ANAROCK Group, emphasized the long-term nature of this trend, driven by factors such as India’s talent pool, operational efficiency, and mature office ecosystem. The demand-supply dynamics led to a decrease in vacancy levels across the top seven cities to 15% in H1 2026 from 16.3% in H1 2025, indicating a tightening market.
In terms of net office absorption, Grade A spaces witnessed a 2% year-on-year increase to 27.44 million sq. ft. Bengaluru and Hyderabad collectively represented 49% of the net leasing in H1 2026, with Bengaluru recording a 26% annual rise to around 8.27 million sq. ft. and Hyderabad seeing a 24% increase to nearly 5.2 million sq. ft.
