India Office Leasing Hits Record 45.5 Million Square Feet

Office leasing across nine major Indian cities reached a historic 45.5 million square feet during the first half of 2026, marking a 10 percent increase over the previous year. CBRE reported that the April-June quarter alone saw a record 24.6 million square feet of absorption, an 18 percent sequential increase. Bengaluru, Pune, and Delhi-NCR emerged as the primary hubs, collectively accounting for nearly 58 percent of second-quarter activity.

Demand was largely propelled by Global Capability Centres, which accounted for 42 percent of total national leasing. Flexible workspace operators also became the leading occupier segment with a 27 percent market share. This trend was most pronounced in Delhi-NCR, where flex space take-up surged from 0.3 million square feet in the second quarter of 2025 to 1.6 million square feet in 2026, representing 45 percent of the region's total leasing.

Industry leaders noted a strategic shift toward core-and-flex portfolios, with a heavy emphasis on sustainability; 76 percent of new office space completed in the second quarter was green-certified. Experts anticipate sustained rental appreciation across core micro-markets due to tight investment-grade supply relative to the consistent demand from technology, research, and financial services firms.