India office leasing stays near record at 48 million sq ft in H1 as GCCs power demand: Knight Frank

Why this matters

India’s office leasing volume holding near record levels in the first half, driven notably by Gulf Cooperation Council (GCC) investors, signals a nuanced shift in global capital flows within institutional commercial real estate. While the US office market grapples with structural challenges—remote work, rising vacancy, and cautious capital deployment—India’s sustained leasing momentum underscores the resilience of emerging markets as alternative growth arenas. GCC capital’s prominent role highlights a strategic diversification away from traditional Western hubs, reflecting both a search for yield and a bet on India’s long-term economic trajectory. For US allocators and lenders, this development underscores the growing importance of geographic diversification in office portfolios. It also suggests that capital is increasingly bifurcating along regional lines, with emerging markets like India absorbing institutional capital that might otherwise have targeted mature US office assets. This dynamic could temper some downward pressure on valuations in the US by redirecting capital flows, but it also raises questions about relative risk appetites and return expectations. Moreover, the leasing strength in India’s office sector may influence global capital markets by setting a benchmark for demand resilience amid broader sector uncertainty. For lenders, the sustained activity signals potential underwriting opportunities in markets where fundamentals remain robust, contrasting with the more cautious stance prevailing in US office finance.

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On the RET wire

• Disclosed office deal value tracked in July 2026: $22.3B across 73 reported transactions. All Office coverage →

Computed from Real Estate Trail’s own tracked coverage

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