India Office Leasing Hits Decade-High Net Absorption in 2026

India's office market reached a decade-high net absorption of 26.9 million square feet in the first half of 2026. Total leasing for the period hit 37.9 million square feet, with Global Capability Centres (GCCs) acting as a primary driver by leasing 15.8 million square feet. JLL Inc. reports that the tech sector and flex operators led second-quarter growth, while domestic occupiers reached a nine-quarter high, accounting for 47.3% of quarterly leasing.

Bengaluru established itself as the premier destination for foreign firms, securing 31.6% of foreign occupier leasing activity in the second quarter. However, Knight Frank India noted a 23% year-on-year decline in Bengaluru's leasing volume to 14.1 million square feet for the first half of the year. This drop is attributed to a high base in 2025; excluding pre-commitment transactions, the city actually reached a historic high for half-yearly leasing. The Outer Ring Road dominated the local market with 52.1% of activity.

Supply in Bengaluru surged as office completions rose 407% to 10.4 million square feet. Despite the volume decline in some sectors, average transacted rents in the city rose 8% to ₹102 per square foot per month, with the most significant growth occurring in the central business district.