Leasing Activity Hits Record Levels as Firms Boost Real Estate Footprint
India’s commercial leasing market is witnessing unprecedented momentum, with a large proportion of corporate tenants planning aggressive portfolio expansions over the next two years. A Cbre South Asia Private Limited report released Thursday indicates that three out of four office users intend to grow their office holdings.
The survey, spanning April to June 2026, shows that roughly 30 % of respondents are gearing up for a “significant” increase in office space, a jump from 18 % in the previous year. This surge reflects growing confidence in the Indian economy and the stability of business prospects.
Half of the surveyed companies aim to enlarge their real‑estate footprint while consolidating current assets, and a quarter are set to renew existing lease agreements during the same period. Overall, firms expect to expand their office space by more than 30 % within the next 24 months.
Anshuman Magazines, Cbre’s Chairman and CEO for the region, noted that the trend marks a move beyond cyclical fluctuations toward structural growth. Total office inventory in India has already crossed the 1 billion square‑foot threshold, underscoring the market’s long‑term attractiveness.
Ram Chandnanani, Managing Director of Leasing Services, highlighted that the expansion is not confined to a single sector or region. About 63 % of large‑scale office users are planning both expansion and consolidation, pointing to rising demand across diverse micro‑markets.
The sector’s performance metrics are impressive: gross leasing in the second quarter of 2026 hit a record 2.46 crore square feet, up 18 % from the previous quarter and 14 % year‑over‑year. Total office absorption in the first half of 2026 reached 4.55 crore square feet, the highest semi‑annual figure recorded, reflecting a 10 % rise over the same period in 2025.
Global Capability Centres (GCC) led the leasing surge, accounting for 42 % of the market and registering a record demand of 1.03 crore square feet. Flex‑space operators contributed 27 % of the total leasing activity.