Mumbai, 29th 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.”
About Knight Frank
Knight Frank LLP is a leading independent, global property consultancy. Headquartered in London, Knight Frank has 20,000+ people operating from over 600+ offices across more than 50 territories. The Group advises clients ranging from individual owners and buyers to major developers, investors, and corporate tenants. For further information about the Company, please visit www.knightfrank.com
Knight Frank India is headquartered in Mumbai and has more than 2,000 experts across Bangalore, Delhi, Pune, Hyderabad, Chennai, Kolkata, Ahmedabad, Indore and Kochi. Backed by strong research and analytics, our experts offer a comprehensive range of real estate services across advisory, valuation and consulting, transactions (residential, commercial, retail, hospitality, land, and capitals), facilities management and project management. For more information, visit www.knightfrank.co.in
