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Informist, Tuesday, Jul. 14, 2026

 

NEW DELHI – India's office leasing market declined 3.9% year-on-year to 37.9 million square feet in the first half of 2026, according to a report by JLL. Among the country's top seven cities, Pune recorded the highest growth in gross leasing volumes, which rose 23.4% year-on-year to 6.02 million square feet during the first half of 2026, the commercial real estate services and investment management company said.

 

Pune was followed by Mumbai, where gross leasing volumes grew 17.8% to 5.88 million square feet, and Hyderabad, which reported a 17.6% increase in gross leasing volumes to 5.38 million square feet in Jan-Jun. Chennai reported a modest 2.2% increase in gross leasing volumes at 3.98 million square feet during the first half of 2026. 

 

The gross leasing volumes in Bengaluru, however, declined 20.5% year-on-year to 9.37 million square feet, despite the city being the highest contributor to gross leasing volumes with a 24.7% market share. The gross leasing volumes for Delhi-National Capital Region declined 21.2% to 6.60 million square feet. Kolkata's gross leasing volumes reported the highest year-on-year decline at 29%. 

 

Among occupiers, leasing activity by global capability centres grew 14.2% year-on-year to 15.8 million square feet, while leasing by domestic firms grew 2.9% to 17 million square feet, according to the report. However, leasing by foreign firms that are not global capability centres declined by nearly 44% year-on-year.    

 

"Within GCCs (global capability centres), tech and BFSI (banking, financial services, and insurance) dominated the leasing activity, followed by the manufacturing segment during the first half of the year," the report said. 

 

During Jan-Jun, net absorption grew 11.6% year-on-year to 26.88 million square feet. Among the top seven cities, net absorption in Pune grew the most, by 118.7% year-on-year to 4.42 million square feet. This was followed by Hyderabad, which reported a 31.5% increase in net absorption to 5.04 million square feet, and Bengaluru, where net absorption grew by 24.2% to 8.3 million square feet during the period. Mumbai's net absorption grew 10% on year to 2.91 million square feet. National Capital Region's net absorption declined 41.6% on year to 3.51 million square feet. 

 

Notably, pan-India vacancy across the top seven cities fell to its lowest level in five years at 14.5%, down 160 bps on year. "The core sub-markets across cities continued to witness single-digit vacancies, factoring in current occupancies and deals which are nearing closures," the report said. End

 

Reported by Astha Oriel 

Edited by Saji George Titus

 

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