NEW DELHI: According to a report by CBRE South Asia, India’s office market reported gross leasing of approximately 24.6 million sq ft in Q2 2026, while new completions for the quarter reached around 21 million sq ft.
The report indicates that total office absorption rose by 18% quarter-on-quarter and 14% year-on-year in Q2 2026, with supply increasing 91% sequentially and 18% year-on-year.
In the first half of 2026, office absorption totaled roughly 45.5 million sq ft, while supply was about 32 million sq ft.
In Q2 2026, flexible space operators emerged as the leading occupier segment, representing 27% of total leasing. Flex operators, technology companies, and BFSI firms collectively made up nearly 62% of leasing during the quarter, and 58% in H1 2026.
Global capability centres (GCCs) remained a key driver of demand, accounting for 42% of total space take-up in Q2 2026 and 43% in H1 2026. GCC leasing surged to approximately 10.3 million sq ft during the quarter, marking a 10% increase from 9.3 million sq ft in Q1 2026.
The number of transactions exceeding 200,000 sq ft rose by 57% quarter-on-quarter, primarily led by flexible space providers and technology firms. Bengaluru, Hyderabad, and Pune represented 68% of large-format transactions in this period.
“India’s office market showcases significant structural strength and resilience, achieving record quarters amid global economic uncertainties,” stated Anshuman Magazine, Chairman & CEO of CBRE for India, South-East Asia, the Middle East, and North Africa.
He noted that GCCs are expanding their presence while flexible space operators are growing in both established and emerging cities.
Fortune 500 companies leased about 6.8 million sq ft in Q2 2026, constituting 28% of overall leasing.
From a supply perspective, roughly 76% or nearly 16 million sq ft of new developments in the quarter received green certification. Additionally, around 74% of the new supply was situated within integrated tech parks.
Bengaluru, Pune, and Ahmedabad contributed 73% of supply in Q2 2026 and 72% in H1 2026.
Bengaluru led city-wise leasing with a 27% share in Q2 2026, while Bengaluru, Pune, and Delhi-NCR combined accounted for about 58% of the quarter’s leasing.
In H1 2026, Bengaluru, Delhi-NCR, and Mumbai together made up approximately 61% of total absorption.
Delhi-NCR achieved its highest-ever quarterly flex space take-up, while Pune experienced its best quarter for overall leasing, predominantly driven by flex operators, according to the report.
The company anticipates GCCs will represent over 40% of total office space absorption in 2026, influenced by demand for flexible workspaces, technology-driven needs, and a preference for quality spaces.
