Office Leasing Across Top Six Cities Up 7% YoY to 41.6 Million Sq. Ft. in H1 2026: Savills India
New Delhi, July 31, 2026: Office space absorption across India’s six major cities reached a record 41.6 million sq. ft. in the first half of 2026, registering a 7% year-on-year (YoY) increase, according to international real estate advisory firm Savills India. Meanwhile, new supply remained steady at 23.7 million sq. ft. in H1 2026, marking a 5% YoY decline. Consequently, India’s total Grade A office stock rose to 872.7 million sq. ft., while overall vacancy rates at the end of June fell to 13.2% from 14.7% in the corresponding period last year, Savills India said in a press release.
The growth was driven primarily by Global Capability Centers (GCCs), which leased 20.0 million sq. ft., or 48% of the country’s total office absorption. The technology sector led overall leasing activity with a 35% share, followed by flexible workspaces at 18% and BFSI at 15%. Additionally, large-sized deals—spanning 100,000 sq. ft. and above—dominated transaction volumes, accounting for 53% of total space leased. Figures presented pertain exclusively to fresh lease transactions and exclude pre-commitments or renewals.
Offering insight into market dynamics, Naveen Nandwani, MD, Commercial Advisory and Transactions at Savills India, said: “The office market has experienced a period of moderation in H1 2026 as occupiers adopted a more measured approach amid geopolitical uncertainties and evolving global economic conditions. While this slowdown is real and reflects cautious decision-making, it should be viewed as a strategic pause rather than a structural shift. India’s office market continues to be underpinned by strong GCC expansion, a deep talent pool and sustained corporate confidence. As businesses rethink their real estate strategies, we expect demand to become more selective and quality-driven, paving the way for the next phase of growth.”
Bengaluru reinforced its position as India’s premier office hub, capturing 32% of total space absorption at 13.1 million sq. ft., a 26% YoY increase, with GCCs contributing nearly 65% of its total volume. Pune emerged as the second-largest market, registering a 56% YoY surge to 6.4 million sq. ft.—its highest half-yearly leasing volume in a decade—driven by tech, flexible spaces, and engineering sectors. Delhi-NCR ranked third with 6.2 million sq. ft. absorbed, led by demand for flexible workspaces and IT-BPM services.
Among other key metro markets, Mumbai recorded 6.0 million sq. ft. of absorption, supported by a 74% YoY jump in new supply and strong activity in BFSI and real estate leasing. Hyderabad posted a 9% YoY rise to 5.9 million sq. ft., with GCCs accounting for a market-high 73% of its total leasing. Meanwhile, Chennai witnessed 4.0 million sq. ft. of office leasing as occupiers took a more cautious stance, though mid-sized transactions continued to comprise over half of its overall activity.
