Mumbai, Aug. 3 -- India's office market recorded 41.6 million sq ft of gross leasing across the six major cities in the first half of 2026, registering a 7 per cent year-on-year increase, according to Savills India.
New Grade A office supply stood at 23.7 million sq ft, down 5 per cent from a year earlier, taking the total Grade A office stock to 872.7 million sq ft. Vacancy declined to 13.2 per cent at the end of June 2026 from 14.7 per cent a year ago.
Global Capability Centres (GCCs) leased 20 million sq ft during the period, accounting for 48 per cent of total office absorption. Technology companies remained the largest occupiers with a 35 per cent share of leasing, followed by flexible workspaces (18 per cent) and the banking, financial services and insurance (BFSI) sector (15 per cent).
Bengaluru remained the country's largest office market with 13.1 million sq ft of leasing, followed by Pune at 6.4 million sq ft, Delhi-NCR at 6.2 million sq ft, Mumbai at 6 million sq ft, Hyderabad at 5.9 million sq ft, and Chennai at 4 million sq ft. Pune recorded the highest growth among the six cities, with leasing increasing 56 per cent year-on-year.
Large transactions of 100,000 sq ft and above accounted for 53 per cent of total leasing activity, reflecting continued demand for large office campuses.
Naveen Nandwani, Managing Director, Commercial Advisory and Transactions, Savills India, said leasing activity moderated during the first half amid geopolitical uncertainties and global economic conditions but remained supported by GCC expansion, a strong talent pool and sustained corporate demand. Savills expects office absorption in 2026 to remain close to last year's record levels.
Published by HT Digital Content Services with permission from Construction World.