Global Capability Centres accounted for 43% of India's office leasing in H1 2026, totaling 20.6 million square feet. This shift reflects a move away from traditional third-party IT firms, which saw their market share drop to 13% as AI adoption reshapes corporate space requirements.
India's commercial real estate market is seeing a fundamental change in who is renting office space. According to recent industry data, Global Capability Centres (GCCs) have become the most influential occupants, while traditional third-party IT services companies are reducing their office footprints. This transition highlights how businesses are reorganizing their operations, partly due to the integration of artificial intelligence and shifting workforce strategies.
GCCs Replace IT Services as Growth Engine
The first half of 2026 saw a notable divergence in demand between these two groups. Third-party IT services firms, which were previously major drivers of office leasing, accounted for only 13% of the market in the first six months of 2026, down from 22% in the same period last year. In terms of area, this meant these firms leased 6.4 million square feet, a significant decrease from the 10.9 million square feet they occupied a year earlier. Analysts suggest this is linked to companies optimizing their staff levels and changing how they deliver services in an AI-focused environment.
Conversely, GCCs have reached a new high, securing 43% of total office leasing with 20.6 million square feet. This represents an increase from their 39% market share in the previous year. Alongside them, flexible workspace operators have also grown their presence, capturing 24% of the market compared to 21% previously, as companies increasingly adopt hybrid working models.
Market Performance and Flight to Quality
Across eight major Indian cities, total office leasing reached 48 million square feet in the first half of 2026. This is a marginal 2% decline compared to the same period in 2025 but still ranks as the second-highest half-yearly performance ever recorded. This resilience suggests that despite global economic uncertainty, the demand for high-quality office space in India remains steady.
Industry leaders note that the market is witnessing a 'flight to quality,' where companies prefer modern, technology-enabled buildings. The shift in demand is less about a total reduction in space and more about a change in the type of occupier. Companies are increasingly choosing India for its deep pool of engineering and digital talent rather than solely for cost savings. This trend is supporting stable rental growth in premium business parks.
Looking ahead, the key monitorable for the commercial real estate sector will be the ability of developers to provide high-specification, sustainable office spaces that cater to the evolving needs of GCCs and innovation-focused businesses. Investors may track whether the current leasing pace can be maintained throughout the second half of the year as global corporate expansion plans continue to unfold.