1 month ago
Office Leasing Rises 7% to 41.6M Sq Ft H1 2026
In the first half of 2026, companies in India rented more office space than before.
They rented 41.6 million square feet, which is 7% more than the same period last year.
New office space built was a little less, so the total available office space grew a bit.
The percentage of empty office space fell from 14.7% to 13.2%.
Bengaluru was the biggest city where offices were rented, and Hyderabad also grew a lot.
A big part of the new office space was used by Global Capability Centres, which are large tech companies that help other firms run their operations.
Even though the world was uncertain, the demand for office space stayed strong.
Office space leasing in India’s top six cities grew 7% YoY to 41.6 million sq ft in H1 2026.
New supply fell 5% to 23.7 million sq ft, raising total Grade A stock to 872.7 million sq ft.
Vacancy rates dropped to 13.2% from 14.7% a year earlier.
Bengaluru led absorption with 13.1 million sq ft (32% share); Hyderabad grew 9% to 5.9 million sq ft.
Global Capability Centres accounted for 48% of absorption, with Hyderabad’s GCC share at 73%.
- Who
- Savills India report
- What
- Office leasing growth in India's top six cities
- Where
- India’s top six cities
- When
- First half of 2026
- Why
- Demand remained resilient, driven by GCC expansion and steady occupier activity
Key facts
- Total leasing volume H1 2026
- 41.6 million sq ft
- Year-over-year growth
- 7%
- New supply H1 2026
- 23.7 million sq ft
- Vacancy rate H1 2026
- 13.2%
- Top city absorption
- Bengaluru 13.1 million sq ft
- GCC absorption share
- 48%
Sources
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