Bengaluru led city-wise leasing with a share of 27% in Q2 2026. Bengaluru, Pune and Delhi-NCR accounted for a combined national share of 58%.
“Bengaluru continues to be India’s leading office market, underpinned by its deep technology talent pool, robust tech ecosystem, supply of best-in-class offices and competitive rentals. The city accounted for nearly 50% of pan-India pre-commitments this year, reflecting occupiers’ willingness to secure quality space well ahead of completion to support their long-term growth,” said Ramita Arora, executive MD & head – flex, India, Cushman & Wakefield.
Volvo declined comment on the deal.
“While global uncertainties have resulted in more measured decision-making, they have not altered the underlying demand for Grade A office assets in Bengaluru. The continued closure of large transactions reflects sustained occupier confidence in the market’s long-term fundamentals,” Arora said.
According to CBRE, India’s office market recorded its strongest quarter on record in Q2 2026 (April–June), with gross leasing touching an all-time high of 24.6 million square feet (mn. sq. ft.) as developers matched pace with a record 21 mn. sq. ft. of new completions in the same quarter.
From a sectoral perspective, flexible space operators were the leading occupier segment with a share of 27%. Flex, technology, and BFSI firms together drove nearly 62% of Q2 2026 leasing and 58% of H1 2026 leasing.Global capability centres (GCCs) continued to anchor demand, accounting for 42% of total office space take-up in Q2 2026 and 43% in H1 2026.
Leasing by these centres reached an all-time high of 10.3 mn. sq. ft. during the quarter, marking a 10% increase from 9.3 mn. sq. ft. in Q1 2026.
Transactions above 200,000 sq. ft. increased by 57% q-o-q, led by flexible space operators and technology firms. Bengaluru, Hyderabad and Pune together accounted for 68% of all large-format transactions in the quarter.
In the quarter, 6.8 mn. sq. ft. of space was leased by Fortune 500 companies, accounting for a share of 28%.
Looking ahead, CBRE expects GCCs to drive over 40% of total space absorption in 2026, with flexible workspaces, technology-led demand and flight-to-quality preferences continuing to shape occupier strategy across India’s office markets.