+
Office leasing rises 7% to 41.6 million sq ft in H1: Savills
Real Estate

Office leasing rises 7% to 41.6 million sq ft in H1: Savills

India's office market recorded 41.6 million sq ft of gross leasing across the six major cities in the first half of 2026, registering a 7 per cent year-on-year increase, according to Savills India.

New Grade A office supply stood at 23.7 million sq ft, down 5 per cent from a year earlier, taking the total Grade A office stock to 872.7 million sq ft. Vacancy declined to 13.2 per cent at the end of June 2026 from 14.7 per cent a year ago.

Global Capability Centres (GCCs) leased 20 million sq ft during the period, accounting for 48 per cent of total office absorption. Technology companies remained the largest occupiers with a 35 per cent share of leasing, followed by flexible workspaces (18 per cent) and the banking, financial services and insurance (BFSI) sector (15 per cent).

Bengaluru remained the country's largest office market with 13.1 million sq ft of leasing, followed by Pune at 6.4 million sq ft, Delhi-NCR at 6.2 million sq ft, Mumbai at 6 million sq ft, Hyderabad at 5.9 million sq ft, and Chennai at 4 million sq ft. Pune recorded the highest growth among the six cities, with leasing increasing 56 per cent year-on-year.

Large transactions of 100,000 sq ft and above accounted for 53 per cent of total leasing activity, reflecting continued demand for large office campuses.

Naveen Nandwani, Managing Director, Commercial Advisory and Transactions, Savills India, said leasing activity moderated during the first half amid geopolitical uncertainties and global economic conditions but remained supported by GCC expansion, a strong talent pool and sustained corporate demand. Savills expects office absorption in 2026 to remain close to last year's record levels.

India's office market recorded 41.6 million sq ft of gross leasing across the six major cities in the first half of 2026, registering a 7 per cent year-on-year increase, according to Savills India.New Grade A office supply stood at 23.7 million sq ft, down 5 per cent from a year earlier, taking the total Grade A office stock to 872.7 million sq ft. Vacancy declined to 13.2 per cent at the end of June 2026 from 14.7 per cent a year ago.Global Capability Centres (GCCs) leased 20 million sq ft during the period, accounting for 48 per cent of total office absorption. Technology companies remained the largest occupiers with a 35 per cent share of leasing, followed by flexible workspaces (18 per cent) and the banking, financial services and insurance (BFSI) sector (15 per cent).Bengaluru remained the country's largest office market with 13.1 million sq ft of leasing, followed by Pune at 6.4 million sq ft, Delhi-NCR at 6.2 million sq ft, Mumbai at 6 million sq ft, Hyderabad at 5.9 million sq ft, and Chennai at 4 million sq ft. Pune recorded the highest growth among the six cities, with leasing increasing 56 per cent year-on-year.Large transactions of 100,000 sq ft and above accounted for 53 per cent of total leasing activity, reflecting continued demand for large office campuses.Naveen Nandwani, Managing Director, Commercial Advisory and Transactions, Savills India, said leasing activity moderated during the first half amid geopolitical uncertainties and global economic conditions but remained supported by GCC expansion, a strong talent pool and sustained corporate demand. Savills expects office absorption in 2026 to remain close to last year's record levels.

Related Stories

Gold Stories

Next Story
Building Material

Cement Prices Rise Rs. 7 per Bag in September; October Hikes Expected

Cement companies may seek to raise prices by Rs. 5 to Rs. 20 per bag across most markets in October, although the ability to sustain the increases will depend on demand recovery and dealer acceptance, according to a report by Centrum Broking. The outlook follows a pickup in pricing momentum during September after largely stable prices in July and August. The all-India average trade price increased by Rs. 7 per bag month-on-month to Rs. 356 in September. Centrum Broking’s channel checks indicated gains across both trade and non-trade segments, with non-trade prices recording sharper increases..

Next Story
Products

Minister G Kishan Reddy Says No Coal Shortage Despite Higher Power Demand

Union Coal and Mines Minister G Kishan Reddy said India was not facing a coal shortage despite higher demand from thermal power plants, monsoon-related disruptions in mining operations and lower hydropower generation. He said coal was being supplied to power stations through railway rakes and road transport. Reddy made the remarks on Monday on the sidelines of the Assocham-organised Angul Aluminium Roadshow in Kolkata. His comments came amid reports of alleged supply constraints at some power plants, although he said the temporary interruptions should not be interpreted as a broader shortage. ..

Next Story
Infrastructure Energy

Bondada Engineering Secures Rs. 1.47 bn in Multiple Orders

Bondada Engineering has secured multiple domestic orders with an aggregate value of Rs. 1.47 bn, the company disclosed in a filing with BSE on September 29, 2026. The orders cover telecom infrastructure, renewable energy and energy-efficient lighting solutions, and are inclusive of taxes. Bondada Green Engineering, a subsidiary of Bondada Engineering, received an order for the supply of 200 telecom towers under the BSNL 40GBT project in Gujarat. The award forms part of the company’s telecom infrastructure business and is linked to requirements in the state. Bondada Renewable Energy, another ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code