New Delhi, July 4 (AHN) India’s office market recorded its highest first‑half gross leasing volume on record in the first half of 2026 and grew 5 per cent year-on-year as demand from Global Capability Centres surged 38 per cent, reflecting resilient occupier demand despite global uncertainties, a report said on Saturday.

The report from Cushman & Wakefield said GCCs remained the main driver of demand, leasing approximately 16.5 MSF during H1 2026, accounting for 38 per cent of total leasing activity and marking a nearly 38 per cent YoY increase.

The momentum remained strong in Q2 as GCC occupiers transacted nearly 8 MSF, contributing 37 per cent of overall office leasing and reinforcing India's position as a preferred destination for global capability centres.

Overall gross leasing volume reached nearly 43 million square feet in H1 2026, and the momentum was strong in Q2 with approximately 21 MSF across the top eight cities.

The geographic footprint of GCC demand also continued to broaden during H1 2026. Bengaluru, Pune, Delhi NCR and Mumbai together accounted for nearly 80 per cent of total GCC leasing during the first half of the year. Bengaluru remained the country's largest GCC market with 5.36 MSF of leasing.

Meanwhile, Pune recorded 3.01 MSF of leasing activity, while Delhi-NCR posted 2.37 MSF and Mumbai witnessed 2.23 MSF of occupier demand.

From a sectoral perspective, occupier demand continued to diversify in H1 2026.

In addition, IT-BPM remained the largest contributor to leasing activity with a 22 per cent share, BFSI and engineering & manufacturing strengthened their presence, accounting for 19 per cent and 16 per cent of demand, respectively.

Flexible workspace operators continued to strengthen their portfolio in India’s office market, leasing 8.4 MSF, accounting for one-fifth of total leasing activity in H1-26. This marks a 55 per cent YoY increase and the highest-ever half-yearly volume recorded by the segment.

The report also noted a moderation in net absorption, largely influenced by lower supply additions and the constrained availability of new space during the period.

—AHN

aar/ag