India's office market achieved its highest-ever quarterly absorption of approximately 24.6 million square feet in Q2 2026, representing an 18% sequential increase and 14% year-on-year growth, according to CBRE South Asia. The quarter also recorded record supply of nearly 21.0 million square feet, up 91% sequentially. In the first half of 2026, office absorption stood at 45.5 million square feet with supply of 32.0 million square feet, marking the highest ever recorded in any six-month period. This performance demonstrates the market's structural depth and resilience even amid volatile geopolitical and economic conditions, with the momentum supported by India's resilient economic growth of 7.7% in FY2025-26 and the real estate sector growing by around 10.4% in the January-March quarter.
Flexible workspace operators emerged as the leading occupier segment, accounting for 27% of Q2 2026 leasing, with flex, technology and BFSI firms together driving nearly 62% of quarterly leasing. Research, consulting & analytics firms contributed 17% and technology companies 12% to the demand mix. Global capability centres (GCCs) continued to anchor office demand, accounting for 42% of total space take-up in Q2 2026 and 43% in H1 2026. GCC leasing reached an all-time high of 10.3 million square feet during the quarter, up from 9.3 million square feet in Q1 2026, representing a 10% quarter-on-quarter increase. Transactions above 200,000 square feet increased 57% quarter-on-quarter, led by flexible space operators and technology firms, with Bengaluru, Hyderabad and Pune together accounting for 68% of these large-format transactions.
Delhi-NCR recorded its highest-ever quarterly flexible office space take-up with 45% share of the region's total leasing of approximately 3.6 million square feet, according to the latest CBRE report. The region's performance mirrors broader national trends, with flexible space operators capturing a 27% share of India's total office sector leasing. Other sectors also contributed significantly, with research, consulting and analytics firms accounting for 17% and technology enterprises securing 12% of Delhi-NCR's leasing volume. Global capability centres (GCCs) remained active in the region, contributing to Delhi-NCR's 8% share of pan-India GCC leasing in Q2 2026. Occupiers in Delhi-NCR are increasingly adopting 'core + flex' models as part of their long-term portfolio strategies, with regional flex leasing rising from 0.3 msf in Q2 2025 to 1.6 msf this quarter. As noted by CBRE, "Delhi-NCR's performance mirrors a broader national trend. Flexible space operators were the leading occupier segment in India's office sector with a share of 27%".
Bengaluru led city-wise leasing with a 27% share in Q2 2026, while Bengaluru, Pune and Delhi-NCR together accounted for 58% of quarterly leasing. In H1 2026, Bengaluru, Delhi-NCR and Mumbai together contributed 61% of total absorption. On the supply side, 76% or nearly 16.0 million square feet of new completions during Q2 2026 were green-certified, with around 74% located within integrated tech parks. Bengaluru, Pune and Ahmedabad together contributed 73% of Q2 2026 supply and 72% of H1 2026 supply. Delhi-NCR recorded its highest-ever quarterly flex space take-up, while Pune posted its highest-ever quarter for overall leasing, driven mainly by flex operators. Pune's strong performance was supported by the city's highest-ever quarter for overall office leasing, with flex operators driving much of the demand.
According to CBRE, India's office market continues to demonstrate structural depth and resilience, delivering back-to-back record quarters. The company expects GCCs to account for over 40% of total office space absorption in 2026, with flexible workspaces, technology-led demand and flight-to-quality preferences continuing to shape occupier strategies. Fortune 500 companies leased 6.8 million square feet during Q2 2026, accounting for 28% of total leasing. With investment-grade supply remaining tight relative to demand, CBRE anticipates sustained rental appreciation across core micro-markets in the coming quarters. The momentum is broad-based from GCCs deepening their presence to flexible space operators scaling rapidly across gateway and emerging cities alike. As noted by Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & North Africa, CBRE, "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. 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."
