India office market 2030

India's office market has become a business strategy conversation. Grade A office stock across the top seven cities reached 931.3 million sq ft at the end of H1 2026, while pan-India vacancy fell to 14.5%. That's a five-year low, down 160 basis points year on year.

This demand has been anchored by Global Capability Centres (GCCs). They occupy more than 272 million sq ft - over a third of occupied Grade A space, and more than 200 new GCCs have entered India in the past two years. Flex operators have doubled their share of gross leasing from 9.8% to 20.2%. Our research forecasts that premium-grade rents will grow faster than overall rents in all seven cities through 2030.

GCCs are India's largest and fastest-diversifying occupier segment, and the runway is still wide.
 

• World's largest GCC market: India hosts 2,100+ GCCs employing about 2.36 million people.
• A broadening origin mix: Americas-based firms' share of GCC leasing fell from 75.2% (2016 to 2021) to 67.3% (2022 to H1 2026), while European firms rose from 20.6% to 26.1%.
• Untapped potential: About 63% of Global 500 companies are yet to establish a GCC in India, and 10% to 35% of hiring across major GCCs now targets AI-specific talent.
• Cost and talent depth: India produces more than 2.5 million STEM graduates a year. Operating costs for a typical business process management employee are 75% to 81% lower in Mumbai, Delhi NCR and Bengaluru than in US secondary markets (Source: Oxford Economics, Nasscom, JLL Research).
• Multi-city by design: Hyderabad and Delhi NCR have gained GCC share as occupiers spread risk beyond a single hub.

The occupier base has diversified. Domestic occupiers rose from 34.4% of gross leasing (2016 to 2021) to 44.6% (2022 to H1 2026), peaking at 54% in 2022 before settling between 41% and 45%.

Share of gross leasing by occupier group, 2016 to 2021 versus 2022 to H1 2026. Flex operators doubled their share to 20%, and Indian corporates rose from 13% to 17%. Source: JLL Research, Q2 2026.

Flex has moved from overflow space to a deliberate, enterprise-scale allocation:
 

• Flex stock has grown at 24.5% a year since 2018 and now stands at 97.9 million sq ft.
• About 50% of enterprise flex demand comes from GCCs, and about 67% from foreign occupiers.
• About 41% of enterprise flex demand comes from deals above 500 seats.

Occupiers are consolidating into better buildings, and the data shows why.
 

• Institutional ownership: Institutionally owned stock (327.0 million sq ft) is 92.3% occupied, against 82.9% for non-institutional single-owner stock and 80.0% for strata-sold stock. It also commands a rental premium of about 14%.
• Green certification: 66.1% of Grade A stock, about 616 million sq ft, is green-certified. Certified buildings command an average rental premium of 26.2% over non-certified ones.
• Premium vacancy: Vacancy in premium stock (547.0 million sq ft) is 9.6%, against 14.5% overall.

Infrastructure is widening the addressable map. Operational metro networks have grown from 248 km (FY15) to 1,095 km (FY26), and operational airports from 74 to 164. Navi Mumbai and Noida now have international airports, and in Hyderabad, Gachibowli is emerging as a cost-effective alternative to Hitec City.

Beyond the top seven cities, nine emerging markets offer 25% to 50% savings on real estate, talent and operations versus Tier I cities: Chandigarh Tri-city, Bhubaneswar, Guwahati, Lucknow, Nagpur, Jaipur, Indore, Coimbatore and Kochi. Together they hold more than 70 million sq ft of office stock.

Our research forecasts 296.7 million sq ft of new supply and 262.5 million sq ft of net absorption between H2 2026 and 2030, keeping the market broadly balanced. Hyderabad (72.4 million sq ft) and Bengaluru (65.0 million sq ft) lead total supply. After Bengaluru (37.8 million sq ft), Hyderabad (31.9) and Pune (31.1) add the most premium supply.

India's occupiers see the shift coming, but most haven't acted yet. In the JLL 2026 Future of Work Survey, 77% of India's business leaders expect AI to reshape their portfolio within three to five years. Only 19% are actively optimising AI in real estate operations, against a 15% global average. Skills gaps, not budget, are the top barrier: 46% cite skills against 35% citing budget, the first time in 15 years. We expect occupancy analytics and AI-powered building systems to become standard specification by 2030.

• Start renewals early. With vacancy at a five-year low, waiting costs you leverage as well as options.
• Treat flex as core portfolio. Build managed space into base planning, with enterprise deals above 500 seats now 41% of flex demand.
• Widen the location search. Evaluate premium corridors in Hyderabad, Pune and Chennai alongside gateway markets.
• Anchor GCC strategy in AI-readiness. Treat AI-specific talent and space redesign as a 2026 planning input, not a 2030 afterthought.

Hybrid work uncertainty: Flexible policies can reduce peak occupancy and space per employee, which clouds long-term space needs.

Economic and cost pressure: Global recession risk, geopolitical tension and technology-sector corrections can delay multinational expansion. Rising construction and environmental, social and governance (ESG) compliance costs can push rents up.

Uneven vacancy: Overall vacancy ranges from 6.8% in Chennai to 22.9% in Hyderabad, with Delhi NCR at 18.5% and Pune at 16.7%. Oversupply in certain micro-markets and infrastructure gaps in emerging ones affect tenant interest.