5 days ago
GCC Expansion and Tight Supply Sustain India Office Growth
India’s office market remained busy during the first half of 2026.
Companies rented more office space than the amount of new space that was built.
This helped lower the number of empty offices.
Global Capability Centres, which support companies’ worldwide operations, were the biggest source of demand.
Bengaluru had the largest share of this activity.
Office rents rose because many companies wanted high-quality workspaces.
More businesses also preferred buildings with environmental certifications.
Retail malls and warehouses also attracted strong demand.
Equirus expects the market to stay strong because demand is high and new supply is limited.
India’s top seven cities absorbed 27.4 million square feet of office space in H1 2026, up 2% year over year.
New office completions fell 10% year over year to 22.2 million square feet, helping reduce average vacancy to 15%.
Global Capability Centres accounted for a record 45% of gross office leasing, with leasing rising 22% to 19.2 million square feet.
Average office rents increased 9% year over year to ₹96 per square foot per month, while southern cities contributed 58% of office take-up.
Green-certified buildings represented 76% of new office completions and 73% of leasing activity in H1 2026.
- Who
- Companies, especially Global Capability Centres, multinational corporations and flexible workspace operators, drove demand, according to Equirus.
- What
- India’s commercial real estate market recorded strong office absorption, rising rents and continued demand for institutional-grade and green-certified workspaces.
- Where
- The activity covered India’s top seven cities, with Bengaluru and Hyderabad among the strongest performers and southern cities accounting for 58% of office take-up.
- When
- The reported figures cover the first half and second quarter of 2026; the report was published on August 28, 2026.
- Why
- Demand remained strong because of GCC expansion, multinational-company growth, flexible workspace demand and limited new office supply.
Key facts
- H1 office absorption
- 27.4 million square feet across India’s top seven cities, up 2% year over year.
- H1 office completions
- 22.2 million square feet, down 10% year over year.
- Average vacancy
- 15%, described as a multi-year low.
- GCC leasing
- 19.2 million square feet, up 22% year over year and equal to 45% of gross office leasing.
- Average office rent
- ₹96 per square foot per month, up 9% year over year.
- Bengaluru absorption
- 8.3 million square feet, up 26% year over year.
- Hyderabad absorption
- 5.2 million square feet, up 24% year over year.
- Green-certified activity
- Green-certified buildings represented 76% of new completions and 73% of leasing activity.
Sources
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