India’s Office Demand and Supply Continue to Scale New Peaks in Q2 2026; Flex Operators and GCCs Anchor the Demand

National, July 6, 2026: India's office market recorded its strongest quarter on record in Q2 2026 (April–June), with gross leasing touching an all-time high of around 24.6 million square feet (mn. sq. ft.), even as developers matched pace with a record 21.0 mn. sq. ft. of new completions in the same quarter, according to a latest report by real estate services and investments firm CBRE South Asia Pvt. Ltd.

In its flagship report “India Office Figures” for Q2 2026, the company said that total absorption increased 18% quarter-on-quarter (Q-o-Q) and 14% year-on-year (Y-o-Y) in Q2 2026. The supply rose by a sharper 91% Q-o-Q and 18% Y-o-Y.

In the first half of 2026 (H1 2026), the sector recorded a historic absorption of ~45.5 mn. sq. ft., the highest ever registered in any half-year period. Supply totalled ~32.0 mn. sq. ft., the highest ever recorded in the first half of a calendar year (January–June).

From a sectoral perspective, flexible space operators were the leading occupier segment with a share of 27%. Flex, technology and BFSI firms together drove nearly 62% of Q2 2026 leasing and 58% of H1 2026 leasing.

Global capability centres (GCCs) continued to anchor demand, accounting for 42% of total office space take-up in Q2 2026 and 43% in H1 2026. Leasing by these centres reached an all-time high of ~10.3 mn. sq. ft. during the quarter, marking a 10% increase from ~9.3 mn. sq. ft. in Q1 2026.

Transactions above 200,000 sq. ft. increased by 57% Q-o-Q, led by flexible space operators and technology firms. Bengaluru, Hyderabad and Pune together accounted for 68% of all large-format transactions during the quarter.

"India's office market continues to demonstrate its structural depth and resilience, delivering back-to-back record quarters even as the world navigates a volatile geopolitical and economic backdrop," said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & North Africa, CBRE. "This strength is broad-based - GCCs are deepening their footprint while flexible space operators scale rapidly across gateway and emerging cities alike. We expect this momentum, anchored by strong fundamentals and sustained occupier confidence, to continue through the rest of 2026."

During the quarter, 6.8 mn. sq. ft. of space was leased by Fortune 500 companies, accounting for a share of 28%.

On the supply side, quality and sustainability continued to define the quarter. About 76% (~16.0 mn. sq. ft.) of new completions during Q2 2026 were green-certified, and 74% were located within integrated tech parks. Bengaluru, Pune and Ahmedabad together contributed 73% of Q2 2026 supply and 72% of H1 2026 supply.

Bengaluru leads the city-wise leasing with a share of 27% in Q2 2026. Bengaluru, Pune and Delhi-NCR accounted for a combined share of ~58%. In H1 2026, the top three cities - Bengaluru, Delhi-NCR and Mumbai - accounted for ~61% of the total absorption.

Delhi-NCR recorded its highest-ever quarterly flex space take-up and Pune posted an all-time-high quarter for overall leasing, both propelled mainly by flex operators.

The momentum comes against the backdrop of a resilient Indian economy, which grew 7.7% in FY2025-26, with the real estate sector (alongside financial and professional services) expanding by approximately 10.4% in the January-March quarter.

Ram Chandnani, Managing Director, Leasing Services, India, CBRE, said, "The demand across cities, asset classes and occupier types remains resilient. Occupiers are prioritising quality, sustainability and flexibility in equal measure - reflected in the scale-up of flex space adoption, and the continued dominance of green-certified assets. With investment-grade supply remaining tight relative to demand, we anticipate sustained rental appreciation across core micro-markets in the coming quarters.”

Looking ahead, CBRE expects GCCs to drive over 40% of total space absorption in 2026, with flexible workspaces, technology-led demand and flight-to-quality preferences continuing to shape occupier strategy across India’s office markets.