New Delhi, April 27: India has achieved a record office leasing of 21.5 million square feet in the first quarter of 2026. This surge is attributed to sustained demand from Global Capability Centers (GCCs) and flexible workspace operators, as revealed in a report released on Monday.
According to the commercial real estate services firm JLL, there has been a 10.2% year-on-year increase in total leasing. The share of GCCs stands at 45.5%, while flexible operators account for 25.9%.
The report indicates that this growth is driven by fundamental changes in how global companies leverage India. GCCs have expanded their footprint by 43% year-on-year, reaching 10 million square feet, now comprising 45.5% of total leasing activity.
Rahul Arora, Senior Managing Director of JLL’s Office Leasing and Retail Services in Karnataka and Kerala, stated, “These are not traditional back-office operations; they are strategic innovation centers focused on AI development, digital engineering, and core product development.”
The leasing market continues to strengthen, with the vacancy rate across India dropping to a five-year low of 14.7%. In the same quarter, net absorption reached 13.7 million square feet.
Regionally, Bengaluru led the leasing volume with a 24.8% share in the first quarter, followed by Mumbai at 19.5% and Hyderabad at 16.8%. Pune accounted for 14.5%, while the Delhi-NCR region had a 14.2% share.
In Bengaluru, GCCs represented 70% of the gross leasing activity for the quarter, marking the highest level in the past two years.
Within GCCs, the technology and BFSI sectors dominated leasing activities, followed by manufacturing. Global companies maintained their dominance in India’s office leasing market with a 57% share in Q1 2026, aligning closely with the previous year’s average.
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My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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