One of the largest transactions in Q2 2026 occurred when the Volvo Group leased 600,000 sq. ft. of office space at Bagmane Capital South in Bengaluru, influenced by geopolitical tensions that have delayed decision-making processes.
Bengaluru topped the list for city-wise leasing, holding a 27% share in Q2 2026, while Bengaluru, Pune, and Delhi-NCR together represented 58% of national leasing.
“Bengaluru remains India’s premier office market, bolstered by a rich technology workforce, a thriving tech ecosystem, premium office space, and competitive rents. The city accounted for nearly 50% of nationwide pre-commitments this year, indicating occupiers’ readiness to secure top-quality space ahead of completion for their long-term growth,” commented Ramita Arora, Executive MD & Head – Flex, India at Cushman & Wakefield.
Volvo declined to comment on the deal.
“While global uncertainties have brought about more cautious decision-making, they haven’t diminished the demand for Grade A office spaces in Bengaluru. The ongoing completion of large transactions demonstrates sustained confidence among occupiers in the market’s long-term fundamentals,” Arora explained.
According to CBRE, India’s office market experienced its most robust quarter ever in Q2 2026 (April–June), achieving record gross leasing of 24.6 million square feet, with developers concurrently completing a record 21 million square feet.
From a sector standpoint, flexible space operators led occupancy with a 27% share. Flex, technology, and BFSI sectors collectively represented nearly 62% of Q2 2026 leasing and 58% of H1 2026 leasing.
Global Capability Centres (GCCs) dominated demand, accounting for 42% of total office space take-up in Q2 2026 and 43% in H1 2026.
Leasing by these centres hit an all-time high of 10.3 million square feet during the quarter, reflecting a 10% increase from 9.3 million square feet in Q1 2026.
Transactions exceeding 200,000 square feet surged by 57% quarter-over-quarter, predominantly led by flexible space operators and tech firms. Bengaluru, Hyderabad, and Pune together comprised 68% of all large-format transactions this quarter.
In total, 6.8 million square feet were leased by Fortune 500 companies, making up 28% of leasing activity.
Looking ahead, CBRE anticipates that GCCs will account for over 40% of total space absorption in 2026, with the trends of flexible workspaces, tech-driven demand, and a focus on quality continuing to shape occupier strategies across India’s office markets.
