India’s office market experienced its strongest quarter ever in Q2 2026, with gross leasing reaching a record high of about 24.6 million square feet. According to a report by CBRE South Asia Pvt. Ltd, developers delivered a record 21 million sq. ft. of new completions to meet the leasing demand.
The total absorption in Q2 2026 surged by 18% quarter-on-quarter and 14% year-on-year, while the supply saw a significant increase of 91% QoQ and 18% YoY. The sector witnessed historic absorption of approximately 45.5 million sq. ft. in the first half of 2026, the highest ever for a half-year period, with the supply hitting a new high of around 32 million sq. ft.
Flexible space operators emerged as the top occupier segment at 27%, with flex, technology, and BFSI firms collectively driving nearly 62% of leasing in Q2 2026 and 58% in H1 2026. Global capability centres (GCCs) remained a key driver, constituting 42% of total office space take-up in Q2 2026 and 43% in H1 2026.
GCC leasing hit a peak of approximately 10.3 million sq. ft. in the quarter, up by 10% from Q1 2026. The forecast indicates that GCCs will contribute over 40% to total space absorption in 2026, with flexible workspaces and technology-led demand shaping occupier strategies.
Transactions exceeding 2 lakh sq. ft. rose by 57% QoQ, primarily driven by flexible space operators and technology firms. Bengaluru, Hyderabad, and Pune collectively represented 68% of all large-format transactions in the quarter.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & North Africa, CBRE, highlighted the resilience of India’s office market amidst global uncertainties. He emphasized the market’s strength across GCCs and flexible space operators, projecting continued momentum for the rest of 2026.
Bengaluru led city-wise leasing in Q2 2026, capturing a 27% share. Bengaluru, Pune, and Delhi-NCR combined accounted for approximately 58% of the market share.
