GCCs to keep India office mkt growing

India's commercial real estate market is poised for continued growth, buoyed by the expansion of Global Capability Centres (GCCs), limited new office supply and heightened demand for high-standard workspaces, according to the latest findings by Equirus.The brokerage predicts favourable demand-supply dynamics will facilitate office space absorption and rental growth, with companies favoring Grade A and green-certified campuses.The top seven Indian cities absorbed a net 27.4 million square feet of office space in the first half of 2026, marking a 2% year-on-year increase.

This surpassed the 22.2 million square feet of new office completions, which declined by 10% YoY. The surplus of demand over new supply contributed to the lowest average office vacancy in recent years, at 15%.GCCs emerged as the primary catalyst for office demand, constituting a record 45% of gross office leasing in H1 2026. GCC leasing surged 22% YoY to 19.2 million square feet.Bengaluru led the GCC demand, accounting for 7.6 million square feet, or 39% of the total GCC leasing nationwide.

The report noted that GCC expansion is transcending the tech sector, penetrating areas like engineering, manufacturing and banking, financial services and insurance (BFSI).Overall office leasing remained robust, reaching 24.6 million square feet in the second quarter of 2026, with H1 absorption reaching a record 45.5 million square feet across leading cities.The report credits the strong demand to the proliferation of multinational companies' capability centres and the rapid proliferation of flexible workspace operators.Office rents also rose, with average rents increasing 9% YoY to Rs 96 per square foot per month.

Southern cities accounted for 58% of the total office take-up.Bengaluru saw 8.3 million square feet of office absorption, a 26% YoY rise, while Hyderabad added 5.2 million square feet, a 24% increase. The retail and logistics sectors also demonstrated resilience, with Grade A malls leasing 4.1 million square feet in H1 2026, despite new completions of only 0.9 million square feet.Warehousing and industrial leasing rose 16% YoY to 22 million square feet, propelled by demand from third-party logistics (3PL), e-commerce and manufacturing firms.