45.5 mn sq ft leased, 43% driven by GCCs: India’s office mkt hits new high

Office leasing in India touched a record 45.5 million sq ft during the first half of calendar year 2026, marking the highest-ever leasing for any first half, according to the latest Real Estate Analysis-July 2026 by Equirus Securities.

Global Capability Centres (GCCs) accounted for 43 per cent of the total office absorption, underlining India’s growing role as a preferred destination for multinational corporations establishing technology, engineering, financial services and business support operations, said the brokerage.

India’s commercial real estate sector continues to witness strong structural momentum, with record office leasing, sustained expansion of Global Capability Centres (GCCs) and growing demand for premium Grade A office developments reinforcing the long-term outlook for the sector, said Equirus Securities.

According to the report, occupiers continue to prioritise green-certified, ESG-compliant Grade A office developments, reinforcing the ongoing “flight to quality” across India’s commercial real estate market. Companies are increasingly opting for modern workplaces that offer sustainability, employee wellness and operational efficiencies.

Equirus noted that India’s Grade A office stock has crossed 1 billion sq ft, while institutional ownership of commercial real estate continues to increase, reflecting the growing maturity of the market and rising participation from global investors.

Equirus estimates that 24.6 million sq ft of office space was absorbed in the second quarter alone, while office supply also remained robust with 32 million sq ft expected to be added during the first half of the year. The report also notes that India’s office stock has crossed 1 billion sq ft, underlining the scale the market has achieved.

The report also highlighted that healthy occupier demand, infrastructure development and continued GCC expansion are expected to sustain leasing momentum across major office markets, including Bengaluru, Hyderabad, Mumbai, Pune, Chennai and the National Capital Region.

The number of GCC transactions increased by around 30% year-on-year. Multinational companies continue expanding engineering, technology, finance and R&D operations in India, supporting demand for premium commercial developments.

The trends assume significance for developers with premium commercial office portfolios. In Delhi-NCR, listed developers such as DLF and Max Estates have established commercial office platforms, while Phoenix Mills, Phoenix Mills, Prestige Estates Projects and Oberoi Realty continue to strengthen its commercial real estate presence across major cities. All are among the listed developers tracked by the brokerage.

Apart from commercial real estate, the report noted that India’s residential market remains resilient despite a high base, supported by sustained demand in the premium housing segment and improving balance sheets of organised developers. It also pointed to continued capital market activity, with listed real estate companies raising funds through qualified institutional placements and other routes to support future growth. Max Estates, for instance, completed an ₹800 crore Qualified Institutional Placement (QIP) in August 2024, according to the report.

The brokerage said the combination of sustained GCC expansion, increasing institutional participation, improving infrastructure and occupiers’ preference for high-quality office developments is expected to provide long-term support to India’s organised commercial real estate sector.

According to Equirus, 76% of new office supply is now green certified, while 73% of leasing is taking place in green buildings. Nearly 70% of office leasing is occurring in buildings that are less than 10 years old, reflecting occupiers’ preference for newer, ESG-compliant campuses.

The report cites CRISIL’s projection that the country’s listed office REIT portfolio could expand to 190-195 million sq ft by FY27, supported by healthy leasing activity, increasing institutional ownership and a growing pipeline of investment-grade commercial assets.

The report argues that REITs are increasingly becoming an important capital recycling avenue for developers looking to monetise mature commercial assets and fund new projects.

Investor appetite for Indian real estate remains strong across private markets and listed markets.

The report highlights several notable transactions during 2026, including IFC’s investment in Emerald Haven Realty, Blackstone’s investment in Taj Aravali, Warburg Pincus’ investment in Fleur Hotels and WSB Partners’ investment in Sowparnika Projects.

Recent fundraising includes the Bagmane Prime Office REIT IPO, Brookfield India REIT’s qualified institutional placements, Waterways Leisure Tourism’s IPO and multiple rights issues and preferential allotments by listed real estate companies.

The report’s valuation analysis shows that India’s leading listed developers continue to trade at elevated multiples, reflecting investor confidence in the sector’s earnings outlook.

Among large-cap developers, companies such as DLF, Lodha Developers, Oberoi Realty, Prestige Estates, Phoenix Mills and Godrej Properties continue to command premium valuations, while several mid-cap and small-cap developers also trade at healthy multiples. Listed REITs similarly continue to attract investor interest amid expectations of steady rental growth