New Delhi, July 6 (IANS) India’s office market recorded its strongest quarter on record in Q2 2026 (April–June), with gross leasing touching an all-time high of around 24.6 million square feet, a report said on Monday.

The report from real estate consulting firm CBRE South Asia Pvt. Ltd said developers matched leasing demand with a record 21 million sq. ft. of new completions.

The total absorption increased 18 per cent quarter-on-quarter and 14 per cent year-on-year in Q2 2026, while the supply rose by a sharper 91 per cent QoQ and 18 per cent YoY.

In the first half of 2026, the sector recorded a historic absorption of roughly 45.5 million sq. ft., the highest ever registered in any half-year period, while supply touched a new record at roughly 32 million sq. ft.

On a sectoral basis, flexible space operators were the leading occupier segment at 27 per cent. Flex, technology and BFSI firms together drove nearly 62 per cent of Q2 2026 leasing and 58 per cent of H1 2026 leasing.

Global capability centres (GCCs) continued to anchor demand, accounting for 42 per cent of total office space take-up in Q2 2026 and 43 per cent in H1 2026.

GCC leasing touched an all-time high of roughly 10.3 million sq. ft. during the quarter, marking a 10 per cent increase from roughly 9.3 million sq. ft. in Q1 2026.

The firm forecasted GCCs to drive over 40 per cent of total space absorption in 2026, with flexible workspaces, technology-led demand and flight-to-quality preferences continuing to shape occupier strategy across India’s office markets.

Transactions above 2 lakh sq. ft. increased by 57 per cent QoQ, led by flexible space operators and technology firms.

Bengaluru, Hyderabad and Pune together accounted for 68 per cent of all large-format transactions during the quarter.

“India’s office market continues to demonstrate its structural depth and resilience, delivering back-to-back record quarters even as the world navigates a volatile geopolitical and economic backdrop,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & North Africa, CBRE.

“This strength is broad-based – GCCs are deepening their footprint while flexible space operators scale rapidly across gateway and emerging cities alike. We expect this momentum, anchored by strong fundamentals and sustained occupier confidence, to continue through the rest of 2026,” he added.

Bengaluru led the city-wise leasing with a share of 27 per cent in Q2 2026. Bengaluru, Pune and Delhi-NCR accounted for a combined share of roughly 58 per cent.

—IANS

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