India Office Market Leases Hit 48M Sq Ft in H1 2026

India’s commercial real estate market recorded a significant surge in the first half of 2026, with total leasing volumes reaching 48.0 million sq ft across eight major cities. This robust growth was largely propelled by Global Capability Centres (GCCs), technology firms, and multinational corporations (MNCs) seeking expansive, high-quality Grade A office campuses.

Large Leases Dominate Market Activity

The majority of this leasing activity stemmed from large-scale transactions, indicating a clear corporate preference for integrated, future-ready workspaces.

• Total national leasing volume: 48.0 million sq ft
• Volume from transactions exceeding 100,000 sq ft: 28.2 million sq ft
• Percentage of total from large transactions: 59%
• Mid-sized leases (50,000 to 100,000 sq ft) contributed: 9.0 million sq ft

Key Cities Lead Absorption

Several key Indian cities demonstrated strong absorption rates for large-format office spaces, with Bengaluru maintaining its leading position and Hyderabad showing remarkable growth.

• Bengaluru large-format leases: 10.1 million sq ft (72% of its total leasing)
• Hyderabad large-scale leasing volume: 4.9 million sq ft (65% of its total market absorption), a 63% increase from H1 2025
• National Capital Region (NCR) large transactions: 4.9 million sq ft (68% of its total leasing)
• Pune large leases: 3.8 million sq ft
• Mumbai large leases: 3.1 million sq ft

Outlook for Commercial Real Estate

This sustained demand for premium, large-format office spaces presents positive implications for listed commercial real estate players and REITs holding Grade A assets. However, the sector remains sensitive to broader global economic conditions and the strategic expansion plans of MNCs and GCCs.

Future rental income growth for developers hinges on consistently high occupancy rates and effective management of operational costs within a competitive market landscape. Investors are advised to closely monitor quarterly updates from major developers and REITs to assess whether this strong leasing momentum translates into improved rental yields and stable cash flows.