New Delhi: Office space leasing across India’s top six cities rose 7% year-on-year to 41.6 million sq ft in the first half of 2026, according to a report by Savills India. Despite global uncertainties, demand remained resilient, supported by steady occupier activity and expansion by Global Capability Centres (GCCs).
New supply during the period stood at 23.7 million sq ft, marking a 5% decline compared to the same period last year. As a result, the total Grade A office stock increased to 872.7 million sq ft by the end of June 2026. Vacancy levels improved, dropping to 13.2% from 14.7% a year ago.
Among cities, Bengaluru retained its top position with 13.1 million sq ft of leasing, accounting for 32% of total absorption. Pune followed with a 15.4% share, while Delhi-NCR contributed 15%. Hyderabad recorded 5.9 million sq ft of absorption, registering a 9% growth, though new supply in the city declined sharply.
Sector-wise, technology firms led office leasing activity with a 35% share, followed by flexible workspaces (18%) and BFSI (15%). Large deals of over 100,000 sq ft dominated transactions, accounting for 53% of total leasing volume.
GCCs remained a key growth driver, leasing 20 million sq ft—nearly 48% of the total absorption. Hyderabad saw the highest GCC share at 73%, followed by Bengaluru at 65%.
Savills noted that while leasing activity showed signs of moderation due to geopolitical uncertainties and cautious decision-making, the trend reflects a strategic pause rather than a structural slowdown. Demand is expected to remain strong, with full-year absorption projected at around 74 million sq ft in 2026.
The report clarified that the figures account only for fresh lease transactions and exclude renewals and pre-commitments.
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