Global
Capability Centres Reshape India’s Office Market in H1 2026 With 45% of Gross Leasing –
ANAROCK
· Of the total gross
office leasing of approximately 42.6 Mn sq. ft. across the top 7 cities in H1
2026, GCCs leased about 19.2 Mn sq. ft.,
accounting for 45% of the total; in H1 2025, their share stood at 41%, or
nearly 15.78 Mn sq. ft. of the total 38.24 Mn sq. ft.
· GCCs continued to
dominate office space demand in the southern cities; of the 10.8 Mn sq. ft.
gross office absorption in Bengaluru, GCCs accounted for 70%, while their share
stood at 55% in Chennai and 48% in Hyderabad
· Grade A net
absorption across the top 7 cities rose 2% annually, from 26.8 Mn sq. ft. in H1
2025 to 27.44 Mn sq. ft. in H1 2026
· Bengaluru and
Hyderabad together accounted for 49% of total net leasing in H1 2026
· New office
completions declined 10% annually, from 24.51 Mn sq. ft. in H1 2025 to 22.15 Mn
sq. ft. in H1 2026
· Grade A office
vacancy declined from 16.3% in H1 2025 to 15% in H1 2026, indicating sustained
occupier demand
· Average office
rentals rose 9% annually, from Rs 88 per sq. ft. in H1 2025 to Rs 96 per sq.
ft. in H1 2026I
Mumbai, 17 July 2026: India’s Grade A office market
remained steady in H1 2026, with GCC (Global Capability Centre) expansion
emerging as the defining force behind leasing activity across the top 7 cities.
Even as global businesses stayed selective on expansion, India continued to
attract occupiers looking to consolidate higher-value functions in established
office markets.
Latest ANAROCK Research indicates that out of the total gross leasing of
approximately 42.6 Mn sq. ft. in H1 2026 across the top 7 cities, GCCs alone
leased about 19.2 Mn sq. ft. - 45% of the total. In H1 2025, their share stood
at 41%, with about 15.78 Mn sq. ft. leased out of the total 38.24 Mn sq. ft.
South Leads GCC Surge
The southern markets continue to lead the GCC dominance trend:
- In Bengaluru,
of the approximately 10.8 Mn sq. ft. gross office absorption in H1 2026,
GCCs alone accounted for 70%, or around 7.55 Mn sq. ft..
- In Chennai,
their share stood at 55% of the total 3.2 Mn sq. ft., or approximately
1.75 Mn sq. ft.
- In Hyderabad,
GCCs accounted for 48% of the city’s 6.4 Mn sq. ft. gross office
absorption, or around 3.05 Mn sq. ft.
Anuj Puri, Chairman - ANAROCK Group, says, “This trend points to a
structural shift in India’s office market. This is not a short-term demand
spike - MNCs are increasingly expanding India-based GCCs to house core
functions such as engineering, R&D, AI, finance, cybersecurity, and digital
operations. They are drawn by India’s deep talent base, operating efficiency,
and mature office ecosystem – factors that will continue to drive both GCC and
regular CRE absorption in the years to come.”
H1 2026: Office Market Dynamics
According to the ANAROCK Research data, Grade A net office absorption
reached 27.44 Mn sq. ft. in H1 2026, marking a 2% increase over the 26.8 Mn sq.
ft. recorded in H1 2025. GCCs continued to anchor overall demand, reinforcing
their growing influence on India’s office market trajectory.
|
NET Office Absorption (In Million Sq.
ft.) |
|||
|
City |
H12026 |
H12025 |
% Change (H1 2026 Vs H1 2025) |
|
Bangalore |
8.27 |
6.55 |
26% |
|
MMR |
4.3 |
4.5 |
-4% |
|
NCR |
4.27 |
5 |
-15% |
|
Chennai |
2.35 |
2.3 |
2% |
|
Hyderabad |
5.2 |
4.2 |
24% |
|
Pune |
2.55 |
3.8 |
-33% |
|
Kolkata |
0.5 |
0.45 |
11% |
|
Total |
27.44 |
26.8 |
2% |
Source: ANAROCK Research &
Advisory
Bengaluru and Hyderabad together accounted for about 13.47
Mn sq. ft., or 49% of total net leasing in H1 2026. Bengaluru recorded a 26%
annual increase in net leasing at approximately 8.27 Mn sq. ft., while
Hyderabad saw a 24% increase at nearly 5.2 Mn sq. ft..
MMR and NCR recorded almost similar net leasing
volumes in H1 2026, at approximately 4.3 Mn sq. ft. and 4.27 Mn sq. ft.,
respectively. However, MMR saw a 4% annual decline in net
leasing, while NCR registered a 15% drop.
The strength in leasing translated into healthier market fundamentals.
While net absorption rose 2% year-on-year, new office completions declined 10%,
reflecting a measured supply pipeline amid evolving market conditions. New
office completions fell from 24.51 Mn sq. ft. in H1 2025 to 22.15 Mn sq. ft. in
H1 2026.
Given that demand continued to outpace fresh supply, vacancy levels
across the top 7 cities softened to 15% in H1 2026 from 16.3% in H1 2025,
pointing to a tightening market.
|
New Office Completion (In Million Sq.
ft.) |
|||
|
City |
H12026 |
H12025 |
% Change (H1 2026 Vs H1 2025) |
|
Bangalore |
7.05 |
6.91 |
2% |
|
MMR |
3.3 |
1.9 |
74% |
|
NCR |
3.95 |
3.7 |
7% |
|
Chennai |
2.55 |
1.5 |
70% |
|
Hyderabad |
3 |
4.7 |
-36% |
|
Pune |
2.1 |
5.7 |
-63% |
|
Kolkata |
0.2 |
0.1 |
100% |
|
Total |
22.15 |
24.51 |
-10% |
Source: ANAROCK Research &
Advisory
Bengaluru and Hyderabad recorded the most visible reduction in vacancy
levels. Vacancy in Bengaluru declined from 12.4% in H1 2025 to 10.8% in
H1 2026, while Hyderabad saw vacancy fall from 26.6% to 23.5% during
the same period. Even so, Hyderabad continues to have the highest vacancy level
among the top 7 cities.
|
Office Vacancy in Top 7 Cities (%) |
||
|
City |
H1 2026 |
H1 2025 |
|
Bangalore |
10.80% |
12.40% |
|
MMR |
13.50% |
15.10% |
|
NCR |
20.75% |
22.20% |
|
Chennai |
8.60% |
9.10% |
|
Hyderabad |
23.50% |
26.60% |
|
Pune |
11.40% |
11.75% |
|
Kolkata |
16.90% |
17.90% |
|
Total |
15.00% |
16.30% |
Source: ANAROCK Research &
Advisory
Rentals Rise
Average monthly office rentals across the top 7 cities also moved up,
supported by sustained demand for premium Grade A assets. According to ANAROCK
Research, the top 7 cities collectively recorded 9% annual growth in average
monthly office rentals, from Rs 88 per sq. ft. in H1 2025 to Rs 96 per sq. ft.
in H1 2026. Bengaluru, NCR, and Hyderabad recorded double-digit annual
rental growth of 10% each.
“The moderation in new office supply reflects a more calibrated market
rather than any underlying weakness. Developers have remained selective in
bringing new stock to market, aligning supply more closely with occupier demand
and supporting a healthier balance between leasing activity, vacancies, and
rentals,” says Puri.
Beyond traditional IT/ITeS demand, sectors such as BFSI, manufacturing
and industrial occupiers, as well as co-working operators, continued to expand
their office footprint in H1 2026. Notably, the share of flexible
workspace operators was just 1 percentage point behind the IT/ITeS sector,
at 25% versus 26%, highlighting the increasingly diversified nature of office
demand even as GCCs remain the central growth driver.
