India’s office sector absorbed a record 45.5 million sq. ft. in the first half of 2026, according to CBRE Research, Q2 2026. For occupiers running multi-city footprints, the H1 2026 leasing data offers a set of planning inputs for commercial real estate portfolio management. It shows where supply is concentrating, which assets occupiers are choosing, and how office leasing decisions are being shaped by quality and ESG requirements. In this piece, we translate these figures into portfolio management strategies for expansion, consolidation, and cost decisions.
What does the H1 2026 absorption record mean for portfolio planning?
India’s office sector recorded its highest-ever half-yearly absorption at approximately 45.5 million sq. ft. in H1 2026, up 9.6% year-on-year, with Q2 alone contributing roughly 24.6 million sq. ft. (CBRE Research, Q2 2026). New completions in H1 2026 reached about 32 million sq. ft., also a first-half record.
Despite that supply, CBRE reports tightening availability of investment-grade space across core micro-markets, alongside sustained occupier enquiries.
For portfolio planners, the takeaway is to build longer planning horizons into decisions for prime space in core corridors, where competition for quality assets is strongest.
The core+flex model as a portfolio lever
Flexible space is a large and growing part of occupier demand, and it can be planned as a deliberate share of the portfolio alongside core leased space.
Flexible space operators drove roughly 27% of Q2 2026 transaction activity, the largest industry share in the quarter (CBRE Research, Q2 2026). Occupiers increasingly treat flex as a core component of their expansion strategies rather than as overflow space.
The core+flex model lets a portfolio manage uncertainty without over-committing on long leases. Core space supports stable, predictable headcount. Flex covers pilot teams, project-based ramps, and demand that has not yet settled.
How to size a core+flex allocation
● Anchor the core to durable demand. Base long-term leased space on headcount you are confident about over the lease term, not on peak projections.
● Use flex for variable and exploratory demand. New market entries, AI-focused teams, and project ramps suit managed space.
● Revisit the ratio at each planning cycle. The right split changes with hiring plans and market conditions, so treat it as a variable rather than a fixed rule.
CBRE also notes that flex operators are securing investment-grade office space to meet tenant preferences for sustainable, technology-enabled, and amenitised environments. This makes flex a credible part of a premium portfolio.
GCC-led expansion and consolidation as parallel portfolio motions
GCCs are both scaling and consolidating, so occupier-side planners can treat expansion and consolidation as concurrent portfolio motions.
Global Capability Centres accounted for approximately 42% of total office absorption in Q2 2026 and about 43% across H1 2026, holding their position as the market’s primary demand anchor (CBRE Research, Q2 2026). CBRE describes the demand as two-pronged. Large GCCs continue to scale and consolidate within key markets, while smaller specialist firms establish new centres to accelerate advanced technology build-outs.
For a portfolio manager, this shapes how a GCC strategy is set. Consolidation into fewer, higher-quality assets and selective expansion into new capability corridors can run at the same time rather than in sequence.
Multi-city planning and asset quality decisions meet here. CBRE notes that established GCCs are prioritising premium, ESG-compliant assets with strong public transport connectivity, which connects directly to the flight-to-quality pattern below.
Flight to quality as a portfolio criterion
Occupiers are concentrating leasing in newer, green-certified assets, so asset age and certification can serve as standing filters in site selection.
The Q2 2026 data shows a quality bias. About 56% of total leasing took place in green-certified tech parks, and almost 70% of absorption occurred in buildings less than 10 years old (CBRE Research, Q2 2026). The flight to quality shows up directly in where transactions are landing.
For portfolio decisions, this suggests using certification and building age as baseline filters that a shortlist should clear before cost and location are weighed. That aligns the portfolio with where current demand is concentrated.
Multi-city diversification: reading city leadership in the data
A few cities lead on scale while others are gaining traction, so occupiers can diversify by matching each city to the role it plays in the portfolio.
In Q2 2026, Bengaluru, Pune, and Delhi-NCR led quarterly leasing with a cumulative share of about 58%. For the half-year period, Bengaluru, Delhi-NCR, and Mumbai together accounted for about 61% of activity (CBRE Research, Q2 2026). CBRE expects Bengaluru, Delhi-NCR, Mumbai, and Hyderabad to retain their leadership in space take-up through the year, with Chennai and Pune poised to gain further traction.
The table below shows Q2 2026 city-wise absorption shares from the report.
| City | Q2 2026 share of absorption |
| Bengaluru | 27% |
| Pune | 17% |
| Delhi-NCR | 15% |
| Mumbai | 14% |
| Hyderabad | 14% |
| Chennai | 8% |
| Ahmedabad | 3% |
| Kolkata | 1% |
| Kochi | 1% |
Source, CBRE Research, Q2 2026 (Figure 1.3, city-wise share of absorption).
Bengaluru, Delhi-NCR, Mumbai, and Hyderabad are expected to hold their lead in space take-up, with Chennai and Pune gaining traction on the back of healthy supply pipelines and diversified talent pools. The report also notes occupiers selectively pursuing expansion into tier-II cities to build long-term scalability, and confirms that Pune has become India’s newest 100-million-sq.-ft. office market.
How do occupiers choose office locations across a portfolio?
Location decisions weigh talent access, corridor connectivity, and asset quality. The Q2 2026 data shows leasing concentrated in core, well-connected micro-markets rather than peripheral locations, reflecting occupier preference for talent-centric corridors.
ESG-compliant asset selection as a baseline filter
With carbon-neutrality targets approaching, ESG certification is becoming a baseline requirement in site selection.
About 76% of Q2 2026 completions comprised green-certified assets, LEED or IGBC-rated, and about 73% of GCC leasing went to green-certified tech parks in the same quarter (CBRE Research, Q2 2026). Both new supply and occupier demand are concentrating in ESG-compliant stock.
CBRE notes that as enterprises pursue carbon-neutrality targets by 2030, preference for premium ESG-certified assets has become a baseline criterion in location and asset selection. For portfolio managers, this supports building certification into standard site-selection criteria now.
Bringing the signals together: a portfolio management checklist
The Q2 2026 data points to a set of portfolio management strategies.
- Plan ahead for prime space. Tightening investment-grade availability rewards longer planning horizons in core corridors.
- Set a deliberate core+flex ratio. Anchor core to durable demand and use flex for variable and exploratory needs, revisiting the split each cycle.
- Run expansion and consolidation in parallel. Both are active GCC motions in the current data.
- Filter for quality first. Apply asset age and green certification as baseline screens before weighing cost and location.
- Assign each city a portfolio role. Use scale hubs, growth markets, and selective tier-II entries rather than uniform presence.
- Embed ESG criteria now. Treat certification as a baseline ahead of 2030 carbon targets.
Frequently asked questions
What is commercial real estate portfolio management? Commercial real estate portfolio management is the coordinated planning and oversight of an occupier’s leased and owned space across multiple locations. It covers expansion, consolidation, cost optimisation, and asset quality decisions to align the real estate footprint with business needs.
What is the core+flex model? The core+flex model combines long-term leased core space for stable operations with flexible or managed flex space for variable and project-based demand. It helps occupiers balance scalability, risk, and cost while keeping portfolio agility.
How much office space did India absorb in H1 2026? India’s office sector absorbed approximately 45.5 million sq. ft. in H1 2026, a record for any half-year period and up 9.6% year-on-year, according to CBRE Research (Q2 2026).
Which are the leading office markets in India? For H1 2026, Bengaluru, Delhi-NCR, and Mumbai together accounted for about 61% of leasing activity. CBRE expects these cities and Hyderabad to retain their lead, with Chennai and Pune gaining traction (CBRE Research, Q2 2026).
Why does flight to quality matter for occupiers? Demand is concentrating in newer, certified assets. In Q2 2026, about 56% of leasing was in green-certified tech parks and almost 70% of absorption was in buildings under 10 years old (CBRE Research, Q2 2026).
Next step
Use the Q2 2026 data as a baseline for your next portfolio review. Map each city in your footprint to a defined role, apply green certification and asset age as standing filters, and set a core+flex ratio against your confirmed and variable demand. The CBRE India research and advisory teams can align the latest leasing data to your portfolio.
