BFSI occupiers leased 7.32 million sq ft of office space across eight major cities, accounting for 36% of total GCC transaction volumes
Mumbai, August 29, 2026: The Banking, Financial Services and Insurance (BFSI) sector has emerged as a key driver of Global Capability Centre (GCC)-oriented office transactions in India, recording a 70% year-on-year increase in transaction volumes during the first half of 2026, according to a study by Knight Frank India.
BFSI occupiers accounted for 7.32 million sq ft of office transactions in H1 2026, up from 4.31 million sq ft in H1 2025. The sector contributed 36% of the overall 20.6 million sq ft of GCC transaction volumes recorded across India’s eight leading office markets during the period.
The findings point to a growing diversification in GCC-led office demand, with sectors beyond traditional technology occupiers increasingly contributing to commercial real estate absorption.
Other Service Sectors Gain Momentum
Demand from other service sectors also recorded healthy growth, rising 16% year-on-year to 5.10 million sq ft in H1 2026, compared with 4.41 million sq ft in the corresponding period last year.
The increase reflects the expanding role of non-technology service industries in India’s office leasing market and the growing diversity of GCC operations across the country.
Manufacturing and IT/ITES Record Lower Absorption
Manufacturing sector office absorption moderated to 4.05 million sq ft in H1 2026, compared with 4.67 million sq ft in H1 2025.
Meanwhile, the IT and IT-enabled services sector witnessed a more significant correction, with office absorption declining 28% year-on-year to 4.13 million sq ft, from 5.71 million sq ft during the same period in 2025.
The moderation reflects a period of recalibration among technology occupiers as companies realign their global strategies.
GCC-Oriented Office Absorption in India
| Sector | H1 2025 | H1 2026 | YoY Trend |
|---|---|---|---|
| BFSI | 4.31 mn sq ft | 7.32 mn sq ft | +70% |
| Other Services | 4.41 mn sq ft | 5.10 mn sq ft | +16% |
| IT/ITES | 5.71 mn sq ft | 4.13 mn sq ft | -28% |
| Manufacturing | 4.67 mn sq ft | 4.05 mn sq ft | Decline |
Source: Knight Frank Research
Viral Desai, International Partner and Senior Executive Director, Occupier Strategy Solutions, Industrial & Logistics, Capital Markets & Retail, Knight Frank India, said India’s commercial real estate market was undergoing a structural shift, with GCC-led demand becoming increasingly diversified beyond traditional technology occupiers. “The 70% year-on-year 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,” he said.
He added that the moderation in IT/ITES absorption reflected a period of recalibration as occupiers realigned their global strategies. The evolving demand profile, according to the study, highlights the increasing depth and resilience of India’s commercial real estate market, with BFSI emerging as a significant driver of office space demand in 2026.