GCC Demand Lifts India Office Leasing To Record 43 MSF In H1: C&W
India's office market recorded its highest-ever first-half leasing volume in 2026, with gross leasing volume (GLV) reaching around 43 million square feet (MSF), as sustained expansion by Global Capability Centres (GCCs) and robust demand from flexible workspace operators offset global macroeconomic uncertainties.According to Cushman & Wakefield's Q2 2026 Office Market Beat Report, office leasing increased 5 per cent year-on-year from 40.9 MSF in H1 2025. Gross leasing during the April-June quarter stood at around 21 MSF, marginally lower by 1 per cent both sequentially and annually.
Mumbai emerged as the largest office leasing market during the first half with 10.7 MSF, followed by Bengaluru at 10.3 MSF. Hyderabad posted a 25 per cent year-on-year increase to 5.2 MSF, while Delhi-NCR recorded a 16 per cent decline to 6.9 MSF.
GCCs Anchor Demand
GCCs remained the largest occupier segment, leasing around 16.5 MSF during H1 2026, accounting for 38 per cent of total office leasing and registering a 38 per cent year-on-year increase. During the second quarter, GCCs leased nearly 8 MSF, contributing 37 per cent of overall market activity.
Bengaluru led GCC leasing with 5.36 MSF, followed by Pune at 3.01 MSF, Delhi-NCR at 2.37 MSF and Mumbai at 2.23 MSF. Hyderabad and Chennai also witnessed healthy GCC demand, reflecting occupiers' strategy of expanding across multiple markets.
The report showed continued diversification in occupier demand. IT-BPM accounted for 22 per cent of leasing activity, followed by BFSI at 19 per cent and Engineering and Manufacturing at 16 per cent. Flexible workspace operators leased a record 8.4 MSF during the first half, up 55 per cent year-on-year, accounting for one-fifth of total office demand.
Vacancy Continues To Fall
Net absorption across the top eight cities stood at around 23 MSF in H1 2026, down 19.8 per cent year-on-year, largely due to lower supply additions. New office supply declined 10 per cent annually to around 21 MSF during the first half, although second-quarter completions rose to nearly 12 MSF. More than 35 MSF of office space is expected to be completed in the second half of the year.
Pan-India office vacancy declined to 13.7 per cent in the second quarter, marking the twelfth consecutive quarter of compression and the lowest level recorded since the pandemic. Rentals continued to rise across major office markets, with Chennai, Mumbai, Hyderabad and Ahmedabad registering quarterly rental growth of 2-3 per cent.
Anshul Jain, Chief Executive - India, SEA, MEA & APAC Office and Retail, Cushman & Wakefield, said the first-half performance reflected the structural strength of India's office market despite global uncertainties. He said long-term commitments by occupiers and continued GCC expansion were supporting demand, while tightening vacancies and improving rentals could encourage greater commercial development activity.
Veera Babu, Executive Managing Director, Tenant Representation - India, Cushman & Wakefield, said demand continues to outpace the availability of quality office space across key markets, with around 80 MSF of active demand currently in the pipeline. He said the expected supply additions in the second half are likely to improve space availability and support stronger absorption.
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