Broad-based demand across non-tech service sectors showed strong momentum, increasing by 16% YoY to reach 5.10 mn sq ft in H1 2026
FinTech BizNews Service
Mumbai, 29 August, 2026: Knight Frank India, through a comprehensive study of GCC oriented sector-wise transaction analysis of India's commercial market, cited that Banking, Financial Services, and Insurance (BFSI) sector has emerged as a leading occupier with 7.32 mn sq ft of transactions during H1 2026. BFSI occupiers set up 70% more GCCs in H1 2026 in YoY terms, from 4.31 mn sq ft in H1 2025.
BFSI has contributed 36% of the overall 20.6 mn sq ft of GCC transaction volumes across leading eight cities in the country.
Other Service Sectors Scale Up: Broad-based demand across non-tech service sectors showed strong momentum, increasing by 16% YoY to reach 5.10 mn sq ft in H1 2026 (compared to 4.41 mn sq ft in H1 2025), indicating healthy diversification in the office leasing ecosystem.
Manufacturing Stabilises: Office absorption by manufacturing entities recorded a minor contraction, adjusting to 4.05 mn sq ft in H1 2026 from 4.67 mn sq ft in H1 2025.
IT/ITES Experiences Significant Correction: Reflecting global tech realignment, the IT and IT-enabled services sector saw its total absorption contract by 28% YoY, dropping from 5.71 mn sq ft in H1 2025 down to 4.13 mn sq ft in H1 2026.
Office absorption by GCC oriented industries (in mn sq ft)
Period | BFSI | Other Service | IT/ITES | Manufacturing |
H1 2025 | 4.31 | 4.41 | 5.71 | 4.67 |
H1 2026 | 7.32 | 5.10 | 4.13 | 4.05 |
Source: Knight Frank Research
Viral Desai, International Partner, Senior Executive Director, Occupier Strategy Solutions, Industrial & Logistics, Capital Markets & Retail, Knight Frank India, said, “India’s commercial real estate market is witnessing a clear structural shift, with GCC-led demand becoming increasingly diversified beyond traditional technology occupiers. The 70% 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. At the same time, 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.”
