India’s office real estate market has shown remarkable resilience amid global uncertainties, recording a modest 3.9% year-on-year dip in gross leasing for the first half of 2026. The sector delivered a strong 37.9 million sq ft of leasing activity, making it the second-highest H1 performance on record, according to JLL’s latest report.
Gross leasing in Q2 2026 stood at 16.45 million sq ft. While this reflects a cautious approach by global occupiers navigating AI-driven transformations and geopolitical shifts, the overall momentum remains positive. Net absorption for H1 2026 reached a decade-high of 26.9 million sq ft, up 11.6% year-on-year, indicating robust headcount expansion by companies betting long-term on India.
Sector-wise Performance
The technology sector led Q2 leasing with a 28.8% share, largely driven by global firms. The Flex sector followed closely at 28.4%, while Manufacturing/Industrial and BFSI contributed 10.8% and 10.2% respectively.
Domestic occupiers achieved their highest quarterly share in nine quarters at 47.3%, powered by aggressive expansion from flex operators. Global Capability Centres (GCCs) continued their dominant run, leasing 15.8 million sq ft in H1 2026 — a 14.2% year-on-year increase — and commanding a 41.7% share of total leasing. GCCs are on track to surpass 2025’s record levels.
Flex operators set a new benchmark, leasing a record 10.23 million sq ft in H1 2026.
City-wise Performance
Bengaluru maintained its leadership with a 24.6% share in Q2 and 24.7% in H1 gross leasing. It also led net absorption. Other key cities showed mixed results:
- Pune posted strong 23.4% y-o-y growth in H1 leasing.
- Mumbai grew 17.8%.
- Hyderabad recorded 17.6% growth.
- Delhi NCR and Chennai showed varied performance.
Bengaluru remained the top choice for global firms with a 31.6% share of foreign occupier leasing in Q2.
Vacancy and Supply Trends
Pan-India vacancy across the top seven cities dropped to a five-year low of 14.5%, down 160 basis points year-on-year. Mumbai and Delhi NCR recorded their lowest vacancy levels in over 15 years. New completions moderated to 22.9 million sq ft in H1.
Outlook
Commenting on the trends, Radha Dhir, Chief Executive Officer, India, JLL, said: “There’s a fundamental transformation we are witnessing in India’s office market, and Global Capability Centres (GCCs) seem to be driving this. … We are confident India will hit the century milestone in leasing volumes over the next two years, cementing its position as the epicentre of global business transformation.”
The report highlights that despite near-term caution, India’s structural strengths — talent pool, innovation ecosystem, and cost arbitrage — position the office market for sustained multi-year growth.
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