Pune: India Office Market H1 2026 witnessed Global Capability Centres (GCCs) further strengthen their position as the primary growth driver of the country’s Grade A office sector, accounting for 45% of the total gross office leasing across the top seven cities during the first half of the year, according to the latest ANAROCK Research report.
Out of the total gross office leasing of approximately 42.6 million sq. ft. recorded during India Office Market H1 2026, GCCs leased around 19.2 million sq. ft., representing 45% of the total office absorption. During H1 2025, GCCs accounted for 41% of gross leasing, with nearly 15.78 million sq. ft. leased out of a total **38.24 million sq. ft.
The report noted that while global businesses remained selective in their expansion plans, India continued to attract occupiers seeking to consolidate high-value operations in established office markets.
Southern Cities Continue to Lead GCC Demand
The India Office Market H1 2026 report highlighted that southern cities remained the strongest destinations for GCC-led office demand.
- In Bengaluru, GCCs accounted for 70% of the city’s approximately 10.8 million sq. ft. gross office absorption, leasing nearly 7.55 million sq. ft.
- In Chennai, GCCs leased around 1.75 million sq. ft., representing 55% of the city’s total 3.2 million sq. ft. gross office absorption.
- In Hyderabad, GCCs accounted for approximately 3.05 million sq. ft., or 48% of the city’s total gross office absorption of 6.4 million sq. ft.
Commenting on the trend, Anuj Puri, Chairman – ANAROCK Group, said:
“This trend points to a structural shift in India’s office market. This is not a short-term demand spike – MNCs are increasingly expanding India-based GCCs to house core functions such as engineering, R&D, AI, finance, cybersecurity, and digital operations. They are drawn by India’s deep talent base, operating efficiency, and mature office ecosystem – factors that will continue to drive both GCC and regular CRE absorption in the years to come.”
Grade A Net Absorption Rises
According to ANAROCK Research, India Office Market H1 2026 recorded 27.44 million sq. ft. of Grade A net office absorption, reflecting a 2% year-on-year increase from 26.8 million sq. ft. during H1 2025.
GCCs continued to anchor overall office demand, reinforcing their growing role in shaping India’s commercial real estate market.
Net Office Absorption (H1 2026)City Net Absorption (Mn Sq. Ft.) YoY Change Bengaluru 8.27 26% Hyderabad 5.20 24% MMR 4.30 -4% NCR 4.27 -15% Pune 2.55 -33% Chennai 2.35 2% Kolkata 0.50 11%
Bengaluru and Hyderabad together contributed 13.47 million sq. ft., accounting for 49% of total net leasing during India Office Market H1 2026.
Bengaluru registered a 26% annual growth in net leasing, while Hyderabad posted a 24% increase. Meanwhile, MMR and NCR recorded nearly similar leasing volumes of 4.3 million sq. ft. and 4.27 million sq. ft., respectively. However, MMR experienced a 4% decline, while NCR saw a 15% year-on-year drop.
Also Read: WeWork India Q1 FY27: Revenue Climbs 28.5% to ₹698 Crore, PAT Surges 533%
New Office Completions Decline
The India Office Market H1 2026 report also showed a moderation in fresh office supply.
New Grade A office completions across the top seven cities declined by 10% year-on-year, falling from 24.51 million sq. ft. in H1 2025 to 22.15 million sq. ft. in H1 2026.
- New Office Completions (H1 2026)
- Bengaluru: 7.05 million sq. ft. (+2%)
- MMR: 3.30 million sq. ft. (+74%)
- NCR: 3.95 million sq. ft. (+7%)
- Hyderabad: 3.00 million sq. ft. (-36%)
- Chennai: 2.55 million sq. ft. (+70%)
- Pune: 2.10 million sq. ft. (-63%)
- Kolkata: 0.20 million sq. ft. (+100%)
The report noted that demand continued to exceed fresh supply, contributing to stronger market fundamentals.
Vacancy Levels Continue to Improve
Reflecting sustained occupier demand, India Office Market H1 2026 recorded a decline in Grade A office vacancy across the top seven cities.
Overall vacancy fell to 15% in H1 2026 from 16.3% during the corresponding period last year.
Among major office markets:
- Bengaluru vacancy declined from 12.4% to 10.8%
- Hyderabad vacancy reduced from 26.6% to 23.5%
- MMR vacancy fell from 15.1% to 13.5%
- NCR vacancy declined from 22.2% to 20.75%
- Chennai improved from 9.1% to 8.6%
- Pune eased from 11.75% to 11.4%
- Kolkata reduced from 17.9% to 16.9%
Despite the improvement, Hyderabad continued to report the highest vacancy level among the top seven cities.
Office Rentals Register 9% Growth
The India Office Market H1 2026 report also highlighted continued growth in office rentals across premium Grade A assets.
Average monthly office rentals across the top seven cities increased by 9% annually, rising from Rs 88 per sq. ft. in H1 2025 to Rs 96 per sq. ft. in H1 2026.
Bengaluru, NCR and Hyderabad each recorded 10% annual rental growth.
Commenting on supply trends, Anuj Puri said:
“The moderation in new office supply reflects a more calibrated market rather than any underlying weakness. Developers have remained selective in bringing new stock to market, aligning supply more closely with occupier demand and supporting a healthier balance between leasing activity, vacancies, and rentals.”
Beyond the traditional IT/ITeS sector, BFSI, manufacturing and industrial occupiers, along with flexible workspace operators, continued expanding their office footprint during India Office Market H1 2026.
The report noted that flexible workspace operators accounted for 25% of office demand, just one percentage point behind the IT/ITeS sector, which contributed 26%, indicating a more diversified demand profile while GCCs remained the dominant growth driver.
