Whalesbook
Strong Performance Despite Global Pressures
India's office market showed strong performance in the first quarter of 2026, leasing a record 21.5 million square feet. This marks a 10.2% increase year-on-year, demonstrating the sector's ability to thrive despite global economic pressures.
GCCs and Flex Spaces Drive Demand
Global capability centers (GCCs) and flex operators were the main drivers of leasing, making up 45.5% and 25.9% of total activity. GCCs leased 9.8 million sq. ft., a 43% jump year-on-year. They are increasingly becoming centers for innovation and digital engineering, moving beyond basic back-office functions. Flex space providers also saw strong demand, leasing 5.56 million sq. ft. across key cities.
Top Cities and Falling Vacancy Rates
Bengaluru led office leasing with a 24.8% share, followed by Mumbai (19.5%) and Hyderabad (16.8%). GCCs were the primary lessees in Bengaluru, making up 70% of its quarterly leasing. Flex operators led in Pune (54.8%) and Delhi NCR (32.9%). Overall, pan-India vacancy dropped to a five-year low of 14.7%. Net absorption hit a quarterly record of 13.7 million sq. ft.
India's Growing Role as Innovation Hub
Looking ahead, India is set to welcome nearly 200 new GCCs between 2024 and 2025. With annual leasing potentially reaching 100 million sq. ft. within two years, India is transforming from a cost-saving location into a global innovation center, with Bengaluru leading the way.