Foreign banking, financial services and insurance (BFSI) companies significantly increased their office space leasing for global capability centres (GCCs) in India during the first half of 2026, while demand from foreign IT-ITeS firms declined, Knight Frank India data showed.BFSI companies leased 7.32 million sq ft of office space across eight major cities between January and June, up 70% from 4.31 million sq ft in the same period last year. Their share stood at 36% of the total 20.6 million sq ft leased for GCCs across the eight markets.The cities covered in the data were Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, Ahmedabad and Kolkata.The sharp rise in BFSI leasing came alongside a 28% decline in office space taken by foreign IT-ITeS companies for GCCs. Their leasing fell to 4.13 million sq ft in the first six months of 2026 from 5.71 million sq ft a year earlier.“India’s commercial real estate market is witnessing a clear structural shift, with GCC-led demand becoming increasingly diversified beyond traditional technology occupiers,” said Viral Desai, international partner, senior executive director, Occupier Strategy Solutions, Industrial & Logistics, Capital Markets & Retail, Knight Frank India.The 70% year-on-year surge in BFSI-led GCC transactions underscores the sector’s growing appetite for high-quality office spaces, he added.Demand from other service companies moved in the opposite direction, with their office leasing rising to 5.10 million sq ft from 4.41 million sq ft during the period.Desai noted that the strong growth in other service sectors points to a broader expansion of India’s services economy.“The moderation in IT/ITeS absorption reflects a period of recalibration as occupiers realign their global strategies. This evolving demand profile highlights the increasing depth and resilience of India’s commercial real estate market, with BFSI emerging as a key driver of office space demand in 2026,” Desai said.Global manufacturing companies also reduced their GCC-related office leasing, with absorption declining to 4.05 million sq ft in January-June 2026 from 4.67 million sq ft in the year-ago period.Accuspace managing director Mukesh Choudhary said, “India’s GCC ecosystem is entering a decisive phase of expansion, with state-level policies, skilled workforce, incentives and infrastructure commitments creating a strong pipeline of new centres and employment”.The scale of GCC additions and diversification is likely to translate into sustained demand for quality office space, not just in established hubs but also across emerging markets, Choudhary added.
