- India remains among the world's fastest-growing major economies, with Real GDP growth at 7.8% in the January–March 2026 quarter, driven by strong performance in hotels & transport (~12.5%), Real Estate, financial and professional services (~10.4%), and construction (~8.4%). The RBI held the Repo rate steady at 5.25% through the quarter, while headline inflation edged up from 3.4% in March to ~3.9% in May 2026, moving closer to the RBI's 4% medium-term target. India's Net Employment Outlook (NEO) moderated to 48% in Q3 2026 from the record high in Q2, though it remained 6 percentage points higher than Q3 2025.
- India's office real estate sector recorded its strongest-ever Q2 performance in 2026, with gross leasing of approximately ~25 mn sq. ft. across the top seven cities, while new supply nearly doubled to ~20 mn sq. ft. from ~10.7 mn sq. ft. in Q1 2026. GCCs remained the dominant occupier segment at 42% share, followed by flex space operators at 27%. Constrained supply relative to demand pushed absorption, compressing vacancy to a post-pandemic low and sustaining rental growth across Bengaluru, Delhi-NCR, Hyderabad, and Mumbai.
- Bengaluru continues to retain its position as India's largest office market with approximately ~231 mn sq. ft. of total office stock, accounting for nearly 26% of the country's total office space stock, and cumulative absorbed Grade-A stock of 207 mn sq. ft. The city recorded gross leasing of approximately 5.59 mn sq. ft. in Q2 2026, contributing nearly 27% of India's total office demand, while new supply additions stood at 4.66 mn sq. ft., led by ORR North at 56% share. GCCs, along with Flexible Office space operators and BFSI, drove the bulk of absorption, with the Technology sector alone accounting for over 30% of the city's conventional office leasing. Strong occupier demand in key micro-markets pushed the citywide average warm shell rental above ₹100 per sq. ft. per month.
- Bengaluru's office momentum in 2026 is set to broaden beyond ORR, with PBD East and PBD North together capturing 25% of citywide transactions as GCCs pre-lease Grade-A space along upcoming metro and airport corridors. ORR remains dominant with a 52% share and continues to run at very limited vacancy. With the Namma Metro Pink Line commencing, the Blue Line progressing, and sustained GCC expansion, improving connectivity is set to unlock the next wave of leasing across PBD East and PBD North. H2 2026 gross absorption is projected at approximately 11 mn sq.ft., taking full-year gross leasing to around 24 mn sq.ft.
