NEW DELHI
India’s office leasing market recorded its strongest first-half performance ever during January to June 2026, showing a five percent increase compared to the same period last year. The growth highlights steady demand for office spaces despite global economic uncertainties affecting several countries.
A report by Cushman and Wakefield said Global Capability Centres played the biggest role in this growth. These centres leased around 16.5 million square feet of office space during the first six months of the year. This accounted for 38 percent of total leasing activity and marked a 38 percent rise from last year.
The second quarter also remained strong, with nearly eight million square feet leased by Global Capability Centres. Overall office leasing reached around 43 million square feet across India during the first half of 2026. Bengaluru, Pune, Delhi NCR, and Mumbai together contributed almost 80 percent of the total leasing by these centres. Bengaluru led the market, followed by Pune, Delhi NCR, and Mumbai.
The report also showed that office demand came from different industries. The IT and BPM sector remained the biggest contributor, accounting for 22 percent of total leasing. Banking, financial services, insurance, engineering, and manufacturing sectors also recorded healthy demand. Flexible workspace operators expanded rapidly, leasing 8.4 million square feet, which represented one-fifth of total office leasing. This segment posted an impressive 55 percent yearly increase and achieved its highest-ever half-year performance.
However, the report noted that net absorption slowed because fewer new office spaces entered the market. Even with limited fresh supply, India’s office sector remained strong, reflecting growing business confidence and continued interest from both domestic and international companies.
