India’s Office Rental Surge Signals Strong Demand in Commercial Realty Sector
MUMBAI: Rising office rents, strong leasing activity and declining availability across several prime business districts indicate sustained occupier confidence, signalling that India’s commercial real estate market is entering a phase of quality-led growth.
The increase in rentals is not merely raising the cost of office occupancy. Companies are increasingly willing to pay a premium for well-located, high-quality commercial spaces that offer better connectivity, modern amenities, operational efficiency and access to talent.
India recorded 45.5 million square feet of office leasing in the first half of 2026, registering a 9.6 per cent increase from the year-ago period, according to data from real estate consultancy CBRE.
Global Capability Centres (GCCs) remained a major driver of demand, accounting for 43 per cent of total leasing during the period. The demand has been supported by multinational companies expanding their technology, engineering, financial services and other strategic operations in India.
The strong performance of GCCs highlights the growing importance of India as a hub for global business operations, with companies seeking high-quality office infrastructure to support their expanding teams and functions.
Leasing figures can vary across consultancies because of differences in methodology and market coverage. However, the broader indicators point to continued strength in the country’s office market.
According to Cushman & Wakefield, gross office leasing across India’s top eight cities stood at 21.4 million square feet in the second quarter of 2026.
Bengaluru accounted for the largest share at 26 per cent, while Mumbai and Delhi-NCR each contributed 19 per cent of the quarterly leasing activity.
Information technology-business process management (IT-BPM) companies emerged as the biggest demand drivers during the quarter. They were followed by flexible workspace operators, engineering and manufacturing companies, and banking and financial services firms.
The combination of sustained occupier demand, higher rentals and limited availability in key micro-markets is increasingly highlighting the business value of premium commercial assets.
As companies continue to prioritise workplace quality, connectivity and proximity to skilled talent, well-positioned office properties are expected to remain attractive, reinforcing the shift towards quality-led growth in India’s commercial real estate sector.
