India's commercial real estate sector demonstrated strong performance in the first half of 2026, with office leasing across eight major markets totaling 48 million square feet. A significant portion of this activity, 59%, comprised large office transactions, defined as spaces 100,000 sq ft or greater, according to a recent report by Knight Frank India.
These substantial deals, accounting for 28.2 million sq ft of the total, underscore a sustained demand from Global Capability Centres (GCCs), multinational corporations, and technology companies that are actively expanding their footprints within India. This trend highlights the country's growing appeal as a global business hub.
Bengaluru Leads the Market
Bengaluru maintained its position as India's premier office leasing market during H1 2026, recording an impressive 14.1 million sq ft in total office absorption. Large office transactions were particularly dominant in the city, making up 10.1 million sq ft, or 72%, of all leasing activity. Despite some moderation compared to the exceptionally high volumes seen in H1 2025, Bengaluru continues to be a magnet for major corporates and GCCs.
Hyderabad Emerges as Fastest-Growing Hub
Following Bengaluru, Hyderabad and the National Capital Region (NCR) each recorded 4.9 million sq ft in large office leasing. These transactions represented 65% of Hyderabad's 7.5 million sq ft total leasing and 68% of NCR's 7.2 million sq ft office absorption, respectively. Mumbai saw 3.1 million sq ft in large office deals out of its 7.3 million sq ft total, while Pune's large-format transactions contributed 3.8 million sq ft to its 6.6 million sq ft total, or 57%.
Notably, Hyderabad emerged as the fastest-growing office market in the period. Leasing of spaces larger than 100,000 sq ft in Hyderabad surged by 63% year-on-year, increasing from 3 million sq ft in H1 2025 to 4.9 million sq ft in H1 2026. This significant growth, alongside an increase in the share of large office transactions from 51% to 65%, signals escalating demand from GCCs and other substantial occupiers in the city.
Market Outlook
Among other key markets, Chennai recorded 3.6 million sq ft of office leasing, with demand distributed evenly across small, medium, and large office spaces. Ahmedabad registered 0.8 million sq ft, primarily driven by small and mid-sized offices, while Kolkata also leased 0.8 million sq ft, with 38% of transactions stemming from large office spaces.
Commenting on the report, Viral Desai, International Partner and Senior Executive Director at Knight Frank India, stated, “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.”
The report underscores a clear preference among occupiers for high-quality, future-ready office assets, solidifying India's standing as a pivotal global business destination.