Large office spaces remain in demand as India's leasing touches 48 million sq ft in H1 2026, says report

Large office transactions continued to dominate India's commercial real estate market in the first half of 2026, accounting for 59% of total office leasing, according to Knight Frank India. The report said office transactions of 100,000 sq ft and above totalled 28.2 million sq ft between January and June, out of the 48 million sq ft leased across India's eight major office markets. The trend reflects strong demand from Global Capability Centres (GCCs), multinational corporations and technology firms expanding their operations in India.

Bengaluru remained the country's largest office leasing market, recording 14.1 million sq ft of total office absorption during H1 2026. Large office transactions contributed 10.1 million sq ft, accounting for 72% of all leasing activity in the city. Knight Frank said Bengaluru continues to attract major corporates and GCCs despite moderating from the exceptionally high leasing volumes seen in H1 2025.

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Hyderabad and the National Capital Region (NCR) followed, with each city recording 4.9 million sq ft of large office leasing. These transactions made up 65% of Hyderabad's 7.5 million sq ft total leasing and 68% of NCR's 7.2 million sq ft office absorption. Mumbai recorded 7.3 million sq ft of total leasing, including 3.1 million sq ft in large office deals, while Pune leased 6.6 million sq ft, of which 3.8 million sq ft, or 57%, came from large-format transactions.

Hyderabad emerged as the fastest-growing office market during the period. Leasing of office spaces larger than 100,000 sq ft increased 63% year-on-year, rising from 3 million sq ft in H1 2025 to 4.9 million sq ft in H1 2026. The share of large office transactions in the city also climbed from 51% to 65%, indicating rising demand from GCCs and other large occupiers.

Among other markets, Chennai recorded 3.6 million sq ft of office leasing, with demand spread evenly across small, medium and large office spaces. Ahmedabad registered 0.8 million sq ft, driven entirely by small and mid-sized offices, while Kolkata also leased 0.8 million sq ft, with 38% of transactions coming from large office spaces.

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Commenting on the report, Viral Desai, International Partner and Senior Executive Director, Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets & Retail Agency, Knight Frank India, said the office market continues to witness robust demand from large occupiers.

"India's office market continues to witness strong demand from large occupiers, particularly Global Capability Centres, technology companies and multinational corporations expanding their operations. While overall office leasing has remained resilient, markets such as Hyderabad, NCR, Mumbai and Pune have increased the share of large office transactions, reflecting occupiers' growing preference for high-quality, future-ready office assets. The sustained dominance of large office leasing reinforces India's position as a leading global business destination," Desai said.