GCCs drive 45% of India’s office leasing in H1 2026: ANAROCK

India’s Grade A office market remained steady in the first half of 2026, with GCC (Global Capability Centers) 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: 

• GCCs contributed around 70% of total gross office absorption of approx. 10.8 Mn sq. ft. in Bengaluru during H1 20’26. This works out to about 7.55 Mn sq. ft.
• Absorption by GCCs was about 55% of the total absorption of 3.2 Mn sq. ft. in Chennai during the period, translating into around 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

Grade A net office absorption in India stood at 27.44 Mn sq. ft. in H1 2026, a marginal improvement from the 26.8 Mn sq. ft. absorbed in H1 2025, ANAROCK Research reveals. GCCs continued to fuel overall demand, underlining their increasing dominance over India’s office market sentiments.

Together, Bengaluru and Hyderabad commanded ~13.47 Mn sq. ft. or 49% share of the total net leasing pie in H1 2026. Bengaluru witnessed ~26% YoY increase in net leasing to ~8.27 Mn sq. ft. while Hyderabad registered 24% YoY rise in net leasing to ~5.2 Mn sq. ft..

MMR and NCR witnessed almost equal quantum of net leasing each in H1 2026 (~4.3 Mn sq. ft. and ~4.27 Mn sq. ft., respectively), however, MMR witnessed 4% decline YoY in net leasing while NCR’s net leasing reduced by 15%.

Leasing activity bolstered occupier-friendly market fundamentals. Net absorption increased by 2% YoY while new office supply moderated by 10% due to cautious supply pipeline responding to the changing market dynamics. New office completions dropped from 24.51 Mn sq. ft. in H1 2025 to 22.15 Mn sq. ft. in H1 2026.

Demand exceeding the fresh supply pushed vacancy levels across the 7 cities to soften to 15% in H1 2026 from 16.3% in H12025.

Bengaluru and Hyderabad witnessed the highest compression in vacancy levels. Vacancy in Bengaluru dropped from 12.4% in H1 2025 to 10.8% in H1 2026. Hyderabad witnessed decline in vacancy from 26.6% in H1 2025 to 23.5% in H1 2026. Hyderabad continues to remain the city with the highest vacancy rate among the top 7 cities.

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.