New Delhi, July 29 : Office space absorption across India's six major cities reached a record 41.6 million sq. ft.in H1 2026, up 7 per cent YoY, a report said on Wednesday.
The report from international real estate advisory firm Savills India said that new supply remained stable at 23.7 million sq. ft. in the first half, easing 5 per cent YoY.
Consequently, India's total Grade A office stock now stands at 872.7 million sq. ft.as of Q2 2026. However, the overall vacancy rate at June-end declined to 13.2 per cent from 14.7 per cent the corresponding period last year.
"India's office absorption is projected to remain close to last year's record levels, supported by steady occupier activity," the report noted.
"The office market experienced a period of moderation in H1 2026 as occupiers adopted a more measured approach amid geopolitical uncertainties and evolving global economic conditions," said Naveen Nandwani, MD, Commercial Advisory and Transactions, Savills India.
"While this slowdown is real and reflects cautious decision-making, it should be viewed as a strategic pause rather than a structural shift. India's office market continues to be underpinned by strong GCC expansion, a deep talent pool and sustained corporate confidence," Nandwani said.
As businesses rethink their real estate strategies, the firm expects demand to become more selective and quality-driven, paving the way for the next phase of growth, he added.
Bengaluru reinforced its position as India's leading office market, capturing 32 per cent of the total office space absorption in the first half of 2026. Pune followed with a 15.4 per cent share, while Delhi-NCR contributed 15 per cent to the total leasing.
Technology continued to dominate office leasing activity, accounting for 35 per cent of total absorption, while flexible workspaces and BFSI followed with 18 per cent and 15 per cent share, respectively.
Large-sized office transactions accounted for 53 per cent of the total leasing volume. GCCs leased 20 million sq. ft., accounting for 48 per cent of India's total office absorption. While Hyderabad city recorded the highest GCC share, accounting for 73 per cent of total leasing by GCC firms, Bengaluru stood at the second position with 65 per cent share.
—IANS
aar/pk
