India's Office Leasing Reaches All-Time High in Q2 2026
India's office market achieved its strongest quarterly performance ever in the April-June period of 2026, with gross leasing touching an all-time high of approximately 24.6 million square feet, according to a report by CBRE. The surge was driven by robust demand from flexible workspace operators and Global Capability Centres (GCCs).
The report also highlighted that developers delivered a record 21.0 million square feet of new office space during the same quarter, marking the highest quarterly supply on record.
Key Figures: Absorption and Supply Growth
According to CBRE, "India's office sector recorded its highest-ever quarterly absorption at 24.6 million sq. ft. in April-June (Q2) 2026, up 18 per cent quarter-on-quarter and 14 per cent year-on-year." New supply rose even faster, registering a 91 per cent quarter-on-quarter increase and an 18 per cent year-on-year rise.
The first half of 2026 also set a record for India's office market. Total office absorption reached around 45.5 million square feet, the highest ever in any half-year period, while new supply stood at approximately 32.0 million square feet, the highest for the January-June period.
Flexible Workspace Operators Lead Demand
From a sectoral perspective, flexible workspace operators emerged as the largest occupier segment during the quarter, accounting for 27 per cent of total leasing activity. GCCs continued to anchor office demand, contributing 42 per cent of total office space absorption in Q2 2026 and 43 per cent during H1 2026.
The report further noted that Fortune 500 companies leased 6.8 million square feet of office space in Q2 2026, representing 28 per cent of total office leasing.
Supply Characteristics: Green Certifications and Tech Parks
On the supply side, 76 per cent (around 16.0 million square feet) of new office completions in Q2 2026 were green-certified, while 74 per cent were located within integrated technology parks.
City-Wise Performance: Bengaluru Leads
Among cities, Bengaluru led office leasing activity with a 27 per cent share in Q2 2026. Bengaluru, Pune, and Delhi-NCR together accounted for approximately 58 per cent of quarterly absorption. During the first half of 2026, Bengaluru, Delhi-NCR, and Mumbai contributed around 61 per cent of total office absorption.
Delhi-NCR recorded its highest-ever quarterly flexible workspace leasing, while Pune posted its highest-ever quarterly office leasing, with both markets primarily driven by demand from flexible workspace operators.
Outlook for 2026
Looking ahead, CBRE expects GCCs to account for more than 40 per cent of total office space absorption in 2026, with flexible workspaces, technology-led demand, and preference for high-quality office assets continuing to shape India's office market.
