NEW DELHI: Office space absorption in India’s six major cities reached 41.6 million sq ft in the first half of 2026, showing a 7% increase compared to the previous year, as reported by Savills India.
The report specifies that these leasing figures pertain only to new transactions, excluding pre-commitments and renewals. The first half of 2026 saw new office supply at 23.7 million sq ft, marking a 5% year-on-year decline.
As of Q2 2026, India’s total Grade-A office stock stood at 872.7 million sq ft, with overall vacancy rates declining from 14.7% to 13.2% compared to the same period last year.
Savills India anticipates office absorption to reach 74 million sq ft for the entirety of 2026, with new supply projected at 74.6 million sq ft. The total Grade-A office stock is expected to grow to 921.8 million sq ft by year-end.
Bengaluru emerged as the leading office leasing market, recording a gross absorption of 13.1 million sq ft in H1 2026, a 26% year-on-year increase and accounting for 32% of total office absorption.
Pune followed with 6.4 million sq ft of gross absorption, a significant 56% increase year-on-year, while Delhi-NCR recorded 6.2 million sq ft and Mumbai saw 6 million sq ft.
Hyderabad had an absorption of 5.9 million sq ft, reflecting a 9% increase, and Chennai recorded 4 million sq ft.
New supply in Bengaluru rose by 20% year-on-year to 10 million sq ft. Delhi-NCR’s new supply increased by 88% to 4.5 million sq ft, while Mumbai saw a 74% rise to 3.3 million sq ft.
Conversely, Pune’s new supply fell by 60% to 2.8 million sq ft, and Hyderabad’s supply also declined by 63% to 1 million sq ft. Chennai recorded 2.1 million sq ft of new supply, down by 23%.
In H1 2026, technology companies represented 35% of total office absorption, with flexible workspaces contributing 18% and the BFSI sector accounting for 15%.
Large transactions of 100,000 sq ft or more made up 53% of total leasing volume. Global capability centers leased 20 million sq ft in the first half of 2026, comprising 48% of India’s total office absorption.
Hyderabad had the highest share of leasing from GCCs at 73%, followed by Bengaluru with 65%.
In Bengaluru, GCCs leased 8.5 million sq ft, while IT-BPM and flexible workspaces collectively accounted for about 62% of sectoral absorption.
In Delhi-NCR, flexible workspaces and IT-BPM led leasing with 26% and 19% of total volumes, respectively. Research and consulting contributed 12%, and GCCs represented 31% of total leasing.
In Mumbai, BFSI led leasing at 1.6 million sq ft, followed by IT-BPM at 0.8 million sq ft and real estate at 0.6 million sq ft, with GCCs accounting for 23% of total absorption.
Hyderabad recorded 4.3 million sq ft of GCC leasing, while Pune saw about 2.7 million sq ft, making up 42% of the city’s total absorption.
Pune also achieved its highest half-yearly leasing volume in a decade, driven by IT-BPM, flexible workspaces, as well as engineering and manufacturing sectors.
