New Delhi, Aug 29 (IANS) The banking, financial services and insurance (BFSI) sector emerged as the leading occupier of office space driven by Global Capability Centre (GCC) activity in the first half of 2026, recording 7.32 million square feet of transactions across India’s leading eight cities, a report said on Saturday.
BFSI-led GCC transactions surged 70 per cent year-on-year in H1 2026 from 4.31 million sq ft in the corresponding period last year, according to a study by Knight Frank India.
The sector accounted for around 36 per cent of the total 20.6 million sq ft of GCC transaction volumes recorded across the eight major cities during the January-June period.
The data points to a structural shift in India’s commercial real estate market, with GCC demand increasingly broadening beyond traditional technology occupiers. The BFSI sector’s strong expansion has emerged as a key driver of office space demand in 2026.
Demand from other service sectors also gained momentum during the period. Office transactions by non-tech service sector occupiers rose 16 per cent year-on-year to 5.10 million sq ft in H1 2026, compared with 4.41 million sq ft in H1 2025, indicating increasing diversification in India’s office leasing market.
Manufacturing-related office absorption, however, moderated slightly to 4.05 million sq ft in H1 2026 from 4.67 million sq ft in the year-ago period.
The IT and IT-enabled services sector recorded a sharper correction, with total office absorption declining 28 per cent year-on-year to 4.13 million sq ft from 5.71 million sq ft in H1 2025. The decline reflects a period of recalibration in the technology sector amid changes in global strategies and operating requirements.
Viral Desai, International Partner and Senior Executive Director, Occupier Strategy Solutions, Industrial & Logistics, Capital Markets & Retail, Knight Frank India, said the country’s commercial real estate market is undergoing a clear structural shift as GCC-led demand becomes increasingly diversified beyond traditional technology occupiers.
“The 70 per cent YoY surge in BFSI-led GCC transactions underscores the sector’s growing appetite for high-quality office spaces, while the strong growth in other service sectors points to a broader expansion of India’s services economy,” Desai said.
–IANS
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