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India Office Leasing Hits 43 Million Sq Ft in H1 2026: Cushman & Wakefield

2026-07-04

India's office market recorded its strongest first-half leasing performance on record, with gross leasing volume (GLV) reaching approximately 43 million sq ft in H1 2026, a five per cent year-on-year increase, according to Cushman & Wakefield's Q2 2026 Office Market Beat Report.

Global Capability Centres (GCCs) remained the key demand driver, leasing 16.5 million sq ft, up around 38 per cent year on year, accounting for 38 per cent of total office demand. Bengaluru led GCC leasing with 5.36 million sq ft, followed by Pune, Delhi-NCR and Mumbai.

Flexible workspace operators also posted their strongest half-year performance, leasing 8.4 million sq ft, a 55 per cent increase over H1 2025, reflecting continued demand for managed office solutions.

Among cities, Mumbai recorded the highest growth in leasing, rising 30 per cent to 10.7 million sq ft, while Bengaluru leased 10.3 million sq ft. Hyderabad registered 25 per cent growth, whereas Delhi-NCR and Chennai witnessed lower leasing activity compared to the previous year.

Net absorption stood at approximately 23 million sq ft during H1 2026. Office vacancy declined to 13.7 per cent in Q2 2026, marking the twelfth consecutive quarter of vacancy compression and the lowest level since the pandemic. New supply totalled 21 million sq ft during the first half, with over 35 million sq ft expected to be completed in the second half of the year.

"The robust leasing activity during the first half of 2026 reinforces the structural strength of India's office market. Global Capability Centres continue to be at the heart of this momentum, while tightening vacancies and rental growth are expected to encourage greater commercial development activity," said Anshul Jain, Chief Executive – India, SEA, MEA & APAC Office and Retail, Cushman & Wakefield.

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