India’s office leasing market reached 48 million sq ft in the first half of 2026, with large campuses accounting for 59% of all transactions. Global Capability Centres and multinational firms are the primary drivers, favoring high-quality Grade A spaces in major cities like Bengaluru, Hyderabad, and Delhi NCR.
Detailed Coverage
The Indian commercial real estate market experienced a significant rise in activity during the first six months of 2026, driven largely by demand from Global Capability Centres (GCCs), technology firms, and multinational corporations. Data shows that these occupiers are increasingly prioritizing large, high-quality Grade A office campuses to support their operations.
Large-Scale Leasing Trends
In the first half of 2026, the national market recorded total leasing volume of 48.0 million sq ft across eight major cities. A significant portion of this activity, totaling 28.2 million sq ft, came from large-scale transactions defined as spaces exceeding 100,000 sq ft. This concentration of large leases, representing 59% of the total volume, reflects a corporate preference for integrated, future-ready workspaces that can house substantial teams under one roof.
Regional Demand and Market Leaders
Bengaluru maintained its position as the primary hub for office absorption, with 10.1 million sq ft of large-format leases recorded in the first half of the year. While this figure shows some moderation compared to previous periods, it still accounted for 72% of the city’s total leasing activity. Hyderabad emerged as a notable high-growth market, where large-scale leasing volume climbed to 4.9 million sq ft—a 63% increase compared to the same period in 2025. This rapid expansion brought large leases to 65% of Hyderabad's total market absorption.
The National Capital Region (NCR) mirrored Hyderabad’s performance with 4.9 million sq ft of large transactions, comprising 68% of its total leasing. Meanwhile, Pune and Mumbai also contributed to the momentum, with Pune recording 3.8 million sq ft in large leases and Mumbai reporting 3.1 million sq ft. While large deals dominate the volume, the mid-sized segment—ranging from 50,000 to 100,000 sq ft—contributed an additional 9.0 million sq ft to the national total.
Investor Context and Outlook
The strong preference for premium, large-format office space has direct implications for listed commercial real estate players and Real Estate Investment Trusts (REITs) that hold significant portfolios of Grade A assets. Companies with high-occupancy campuses in these core business hubs are likely to benefit from the sustained demand from global firms.
However, investors should note that the sector's performance remains sensitive to global economic conditions, particularly the hiring and expansion plans of multinational corporations and GCCs. Future growth in rental income for developers will depend on their ability to maintain high occupancy rates and manage operating costs in a competitive market. Investors may track upcoming quarterly updates from major office developers and listed REITs to gauge whether this leasing momentum is translating into improved rental yields and consistent cash flows.