India's Office Market Sees Record 21.5 Million Sq. Ft. of Gross Leasing in Q1 2026
A report from commercial real estate services firm JLL has revealed that India's office market posted a quarterly record of 21.5 million square feet of gross leasing in Q1 2026, driven by demand from Global Capability Centres and flexible workspace operators.
Key Highlights:
- 21.5 million sq. ft. of gross leasing in Q1 2026, a quarterly record
- 10.2 per cent year-on-year growth in gross leasing
- Gross leasing rose driven by demand from GCCs (45.5%) and flex operators (25.9%)
Fundamental Transformation in India's Office Market
The growth in India's office market is being driven by a fundamental transformation in how global enterprises leverage India, with GCCs expanding their footprint by 43 per cent year-on-year to 10 million sq. ft.
"These are not traditional back-office operations, they are strategic innovation hubs focussed on AI development, digital engineering, and core product development,” said Rahul Arora, Head, Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
Market Fundamentals Continue to Strengthen
Market fundamentals continue to strengthen, with pan-India vacancy dropping to a five-year low of 14.7 per cent and net absorption reaching a record 13.7 million sq. ft. for the quarter.
Regional Breakdown:
- Bengaluru led with 24.8 per cent share of the Q1 leasing volumes
- Mumbai with 19.5 per cent share
- Hyderabad with 16.8 per cent share
- Pune with 14.5 per cent share
- Delhi-NCR with 14.2 per cent share
GCCs Dominate Leasing Activity in Bengaluru
Bengaluru saw GCCs account for a 70 per cent share of the quarterly gross leasing activity in the city, marking the strongest share in two years.
Global-Headquartered Firms Continue to Lead
Global-headquartered firms continued to account for a majority share of the India office leasing landscape with a 57 per cent share in Q1 2026, mostly in line with their previous year average.
Domestic occupier activity was driven by indigenous flex operators who held a dominant 57.8 per cent share of the total space leased by them during the quarter.