Volvo seals one of Q2's biggest office deals with 600,000 sq ft Bengaluru lease

In one of the biggest deals of Q2 2026, the Volvo Group has leased 600, 000 sq. ft. of office space at Bagmane Capital South in Bengaluru as geopolitical tensions have slowed down the decision-making process.

Bengaluru led city-wise leasing with a share of 27% in Q2 2026. Bengaluru, Pune and Delhi-NCR accounted for a combined national share of 58%.

“Bengaluru continues to be India’s leading office market, underpinned by its deep technology talent pool, robust tech ecosystem, supply of best-in-class offices and competitive rentals. The city accounted for nearly 50% of pan-India pre-commitments this year, reflecting occupiers’ willingness to secure quality space well ahead of completion to support their long-term growth,” said Ramita Arora, executive MD & head – flex, India, Cushman & Wakefield.


Volvo declined comment on the deal.

“While global uncertainties have resulted in more measured decision-making, they have not altered the underlying demand for Grade A office assets in Bengaluru. The continued closure of large transactions reflects sustained occupier confidence in the market’s long-term fundamentals,” Arora said.

According to CBRE, India’s office market recorded its strongest quarter on record in Q2 2026 (April–June), with gross leasing touching an all-time high of 24.6 million square feet (mn. sq. ft.) as developers matched pace with a record 21 mn. sq. ft. of new completions in the same quarter.

From a sectoral perspective, flexible space operators were the leading occupier segment with a share of 27%. Flex, technology, and BFSI firms together drove nearly 62% of Q2 2026 leasing and 58% of H1 2026 leasing.

Global capability centres (GCCs) continued to anchor demand, accounting for 42% of total office space take-up in Q2 2026 and 43% in H1 2026.

Leasing by these centres reached an all-time high of 10.3 mn. sq. ft. during the quarter, marking a 10% increase from 9.3 mn. sq. ft. in Q1 2026.

Transactions above 200,000 sq. ft. increased by 57% q-o-q, led by flexible space operators and technology firms. Bengaluru, Hyderabad and Pune together accounted for 68% of all large-format transactions in the quarter.

In the quarter, 6.8 mn. sq. ft. of space was leased by Fortune 500 companies, accounting for a share of 28%.

Looking ahead, CBRE expects GCCs to drive over 40% of total space absorption in 2026, with flexible workspaces, technology-led demand and flight-to-quality preferences continuing to shape occupier strategy across India’s office markets.