India's office market stays robust as demand outpaces limited new supply

According to a new study by brokerage Equirus, India's commercial real estate sector remains strong thanks to expanding Global Capability Centres and a shortage of fresh office supply. The leading seven markets recorded net absorption of 27.4 million sq ft in H1 2026, up 2% from the previous year, while new office completions dropped 10% to 22.2 million sq ft, pushing the vacancy rate down to a multi-year low of 15%. GCCs accounted for a record 45% of gross office leasing, with Bengaluru alone responsible for 39% of that activity.

Overall leasing hit 24.6 million sq ft in Q2, and average rents rose 9% year-on-year to Rs 96 per sq ft per month. Green-certified projects made up 76% of new completions and 73% of leasing, reflecting growing ESG expectations. The retail and logistics segments also performed well, with Grade A malls leasing 4.1 million sq ft and warehousing space increasing 16% to 22 million sq ft.