GCCs, large tech companies keep office leasing market robust

Mumbai: India's record office leasing in the March quarter is underpinned by a less visible but decisive trend, rising pre-commitments by large occupiers locking in high-quality space well before completion to secure future capacity, hedge against supply constraints, and gain pricing certainty in a tightening market.

While gross leasing hit a record 21.5 million sq ft during the period, a significant share of net absorption came from the conversion of pre-leased space, indicating that demand is being locked in well before project completion. Pre-commitments are also helping compress vacancy levels, now at a five-year low of 14.7%, despite new supply, showed data from JLL India.

"Early leasing is reshaping how projects are underwritten; developers are increasingly aligning construction milestones with committed occupier demand rather than building ahead of the curve," said Sandeep Runwal, president, Naredco Maharashtra. "This is improving capital efficiency and reducing vacancy risk at completion, particularly in high-demand office corridors."


This shift is being led by global capability centres (GCCs) and large technology firms expanding their India footprint for AI, engineering and product roles, rather than traditional back-office functions.

"This growth is being driven by a fundamental transformation in how global enterprises leverage India, with GCCs expanding their footprint by 43% on-year to 10 million sq ft and now commanding 45.5% of total leasing activity," said Rahul Arora, head, office leasing and retail services and senior MD (Karnataka, Kerala) at JLL India.

"These are not traditional back-office operations, they are strategic innovation hubs focused on AI development, digital engineering, and core product development."

The January-March period marked the strongest-ever first quarter for India's office market, with gross leasing rising 10% year-on-year to 21.5 million sq ft, exceeding the quarterly average for 2025 and setting the stage for another robust year. Demand continues to be anchored by GCCs, which accounted for 45.5% of total leasing at 9.8 million sq ft, recording 43% annual growth. Flexible workspace operators followed with a 25.9% share, leasing 5.56 million sq ft across the top seven cities.

At a sectoral level, technology firms led leasing activity with a 29.1% share, followed by flex's 25.9% and BFSI's 20% share. The BFSI segment recorded its highest-ever quarterly leasing volumes, driven by large deals and pre-commitments.