India's commercial office market defied the West Asia war and its global impact with strong leasing in the January-June period across the top cities, propelled by global capability centres (GCCs) and flexible workspace operators.
The sector recorded gross leasing of 45.5 million sq ft in the first half of 2026, the highest ever registered in any half-year period, up from 41.5 million sq ft last year.
GCCs anchored demand, accounting for 43% of total office space take-up during the period, with leasing by these centres reaching an all-time high of 19.6 million sq ft, as per data from CBRE South Asia Pvt. Ltd.
“Despite the geopolitical headwinds and AI-led uncertainty, the office sector performed well. Existing GCCs are expanding and consolidating, while new GCCs continue to enter the country in various avatars. We are seeing a fair bit of pre-leasing happening in office buildings that are still not complete,” Ram Chandnani, managing director, leasing services, India, CBRE, told Mint.
CBRE expects GCCs to drive over 40% of total space absorption in 2026, with flexible workspaces, technology-led demand and premium preferences shaping occupier strategy across India’s office markets.
In the first six months this year, flex office space leasing also rose to 11.1 million sq ft compared to 7.7 million sq ft.
Flex workspaces are a great option for companies entering the country or starting small before scaling up, Chandani added.
Embark, a platform launched by developer Embassy Group last year to enable and accelerate the setting up of GCCs in India, is witnessing two trends playing out—large companies setting up smaller centres to do niche work, and smaller- to mid-market companies setting up GCCs here.
“Flexibility is at the core. Those that start with 25-50 seaters, are thinking of expanding, and then, flexible workspaces are the best option, until they grow further and then want their own office,” said Aravind Maiya, co-founder and CEO, Embark.
Strong GCC outlook
India has over 2,110 GCCs generating close to $100 billion, which have played a huge role in expanding the commercial office market. The growth outlook remains positive with the number of GCCs projected to grow to 5,000 by 2030, as per analyst reports.
In recent times, flex workspace operators such as WeWork India, Indiqube Spaces, and Smartworks, as well as real estate investment trusts (Reits), have seen rising interest from mid-sized GCCs, with the former serving as the first port of call.
“Many mid-sized businesses are moving jobs here and setting up GCCs. The 200-500 people set-up is seeing a lot of traction,” Santosh Martin, chief revenue officer, WeWork India. As of March 2026, GCCs accounted for 38.2% of WeWork India's revenue and 36.4% of its member base. GCC members grew from 27,000 in March 2025 to 38,000 in March 2026.
“GCCs today are an extension of the front office, housing critical functions and high-value talent. For office owners, leasing space is no longer enough. Occupiers expect best-in-class ESG (environmental, social, and governance) credentials, amenities, accessibility, wellness and overall employee experience," said Shirish Godbole, chief executive officer, KRT.
Knowledge Realty Trust (KRT), a Reit, is designing its future developments around the evolving requirements of the GCC. Its upcoming 1.4 million sq ft campus on Mysore Road, for example, is being developed to meet the expectations of next-generation GCC occupiers.