If you’re tracking India’s real estate market, the first half of 2026 gave you a lot to look at. Office leasing came in at 45.1 mn sq. ft., the best half-year on record, and capital inflows hit USD 8.5 bn, up around 32% from a year earlier and the strongest half-yearly number since 2018. And all this happened while global conditions got noticeably harder to navigate.
CBRE’s India Mid-Year Market Outlook FY2027 goes back to the projections CBRE Research made in March and checks them against what actually happened, segment by segment, what’s changed, and what you should be watching through March 2027.
So How Did Each Segment Actually Do?
| Segment | H1 2026 headline | Assessment |
| Economy | 7.8% real GDP growth in Q1 FY2027, higher than the RBI’s projection | Ahead of Outlook |
| Office | 45.1 mn sq. ft. leasing | Ahead of Outlook |
| Retail | ~3.9 mn sq. ft. leasing, up ~20% Y-o-Y | Ahead of Outlook |
| Capital Markets | USD 8.5 bn capital inflows, up ~32% Y-o-Y | Broadly in Line |
| Industrial & Logistics | ~32 mn sq. ft. space take-up | Broadly in Line |
| Residential | ~129,200 units of housing sales | Broadly in Line |
| Data Centres | ~1.75 GW operational stock | Broadly in Line |
Source: CBRE Research, India Mid-Year Market Outlook FY2027, September 2026.
India’s FY2027 outlook has had to contend with a tougher global backdrop than most expected, with geopolitical tension and disruption around the Strait of Hormuz putting pressure on energy security, supply chains, and inflation. Even so, things at home have stayed solid. The RBI raised its FY2027 GDP growth forecast to 6.7% in August 2026, up from 6.6% in June, and held the policy repo rate steady at 5.25%.
What’s Actually Driving This Office Leasing Boom?
Office came in Ahead of Outlook. New supply hit 32.0 mn sq. ft., the biggest H1 on record, and total office stock crossed the 1 bn sq. ft. mark in Q2 2026, thanks to a steady stream of investment-grade additions.
GCCs Are Still the Big Story
GCCs made up 43% of all leasing activity, cementing themselves as one of the biggest demand drivers out there. They kept scaling up high-value work in innovation, engineering, product development, and enterprise leadership, and a growing wave of mid-market and nano GCCs widened the base of who’s actually driving growth. GCC deal volume grew 28% year-on-year in H1 2026, and these centres accounted for more than half of every transaction above 100,000 sq. ft.
For the rest of FY2027, you can expect GCCs to make up 40-45% of total absorption, pushed along by new entrants and existing occupiers growing in markets they’re already in. 75% of these occupiers expect portfolio growth over the next two years. If you’re weighing when to set up or scale GCC operations in India, this is useful context to have.
Flexible Space Is Having a Moment
Flexible space operators topped office absorption in H1 2026, grabbing a record 25% share of leasing. More and more occupiers want the agility, cost efficiency, and ability to scale their footprint up or down that flexible space gives them.
Where Most of This Leasing Happened
Bengaluru led both space take-up and new supply in H1 2026, with Delhi-NCR, Hyderabad, and Mumbai not far behind. Across the major office markets, good-quality supply in prime areas stayed hard to come by, with a lot of new development ending up in peripheral locations instead.
Looking forward, Bengaluru, Delhi-NCR, and Mumbai should keep leading the pack on total take-up, while Pune and Chennai keep gaining ground, helped along by deep talent pools, infrastructure upgrades, and supportive state policy. That fits with a bigger shift toward prioritising accessibility and workforce convenience, with 70% of respondents putting commute infrastructure near the top of their list when picking office locations.
What Does USD 8.5 Bn in Capital Inflows Actually Tell You?
Capital Markets came in Broadly in Line, with deployment holding steady thanks to consistent domestic investor activity. Here’s what the H1 2026 numbers look like:
● USD 8.5 bn in capital inflows, up ~32% Y-o-Y.
● ~94% share of domestic investors in H1 capital inflows.
● ~92% share of capital deployed into land/development sites and office assets.
● ~USD 1.9 bn in investment and development platforms established.
Foreign participation stayed limited, so domestic investors kept doing most of the heavy lifting, led by developers, listed REITs, and institutional investors. Built-up office assets stayed a favourite destination, with inflows there rising fourfold year-on-year, with land and development sites across core and alternate sectors close behind. Land acquisitions for office projects doubled compared to the same period last year, and more investment and development platforms are being set up, which should support future capital deployment.
What’s Actually Pulling in Investment
● Growth and monetary stability. Real GDP grew 7.8% in Q1 FY2027, and Japan Credit Rating upgraded India’s sovereign credit rating to ‘A-‘ with a ‘stable outlook’ in September 2026.
● Foreign capital access. The RBI widened access to government securities and eased FPI investment limits, while the special forex-swap facility mobilised USD 136.4 bn, including USD 127.2 bn through FCNR(B) deposits.
● REIT reforms. The Taxation and Other Laws (Amendment) Act, 2026 received presidential assent in August 2026. It allows REIT/InvIT SPVs to opt for the concessional tax regime and use Minimum Alternate Tax (MAT) credits, while dividend distributions remain tax-exempt for investors.
Investment momentum looks set to hold steady across office, I&L, residential, data centres, healthcare, hotels, and more. Foreign participation could pick up in the second half of the fiscal year.
What Should This Mean for You If You’re Investing or Developing?
| Segment | H1 2026 performance | Outlook through FY2027 |
| Data Centres | ~1.75 GW operational stock; ~130 MW added, up ~18% Y-o-Y | Capacity approaching 2.0-2.2 GW by end of 2026 |
| Industrial & Logistics | ~32 mn sq. ft. take-up, ~5% above H2 2025 | 3PL, e-commerce and E&M occupiers likely to remain primary demand drivers |
| Retail | ~3.9 mn sq. ft. leasing; Fashion & Apparel 40% share | Grade A supply pipeline of over 5 mn sq. ft. into suburban and peripheral corridors |
| Residential | ~129,200 units sold, ~142,000 launched | High-end segment expected to contribute 30-35% of overall sales |
Source: CBRE Research, India Mid-Year Market Outlook FY2027, September 2026.
In data centres, Mumbai took a 52% share of India’s supply, with Chennai at 18% and Delhi-NCR at 11%. In industrial and logistics, Delhi-NCR, Chennai, and Bengaluru together made up around 60% of H1 2026 absorption, and quoted warehousing rents went up year-on-year across most major micro-markets.
In retail, domestic retailers held more than 70% of space take-up. With rental growth in prime spots getting close to peak levels, the market took a more careful approach to weighing overall space economics against long-term viability. In residential, developers leaned more into phased and tower-wise launches to better match supply with actual demand, and apartment right-sizing could become more common, something you’re already seeing in Pune, Hyderabad, and Greater Noida.
What Should You Be Watching Through March 2027?
| Indicator | Latest reference point |
| Energy prices | Brent crude briefly above USD 119/bbl in April 2026 before retreating |
| Inflation | Retail inflation at 4.38% in June and 4.45% in July; RBI FY2027 CPI forecast of 5.0% |
| Policy rates | Repo rate at 5.25%, neutral, data-dependent stance |
| Foreign capital | Limited participation in H1 2026; could strengthen in H2 FY2027 |
| Trade policy | India-UK CETA in effect; U.S. placed Indian goods in a lower 10% tariff band |
| Residential demand | Market normalising from the elevated activity levels of 2023 and 2024 |
Source: CBRE Research, India Mid-Year Market Outlook FY2027, September 2026.
CBRE frames the FY2027 story as one that’s increasingly about adaptability within a wider set of risks. Resilient domestic demand, services activity, public capex, and better trade access could all help offset some of that pressure, and the festive period should give demand a useful boost across consumption-linked sectors.
Questions You Might Have
What is the India real estate market outlook for FY2027?
CBRE Research assessed Economy, Office and Retail as Ahead of Outlook, and Capital Markets, Industrial & Logistics, Residential and Data Centres as Broadly in Line. H1 2026 recorded 45.1 mn sq. ft. of office leasing and USD 8.5 bn in capital inflows, the highest half-yearly volume since 2018.
What is driving office leasing in India in 2026?
GCCs accounted for 43% of leasing activity in H1 2026, and the number of GCC deals grew 28% Y-o-Y. Flexible space operators led absorption with a record 25% share. GCCs are projected to account for 40-45% of total absorption through the rest of FY2027.
What does USD 8.5 bn in capital inflows indicate?
Domestic investors accounted for ~94% of H1 capital inflows, and ~92% of capital was deployed into land/development sites and office assets. Foreign participation could strengthen in the second half of the current fiscal year.
Which Indian cities are leading office demand?
Bengaluru led space take-up and new supply additions in H1 2026, followed by Delhi-NCR, Hyderabad and Mumbai. Pune and Chennai are expected to continue gaining traction.
Where This Leaves Things
H1 2026 brought together record office leasing and the biggest half-yearly capital inflows since 2018, with domestic investors driving most of that momentum. If you’re an occupier, the signals point toward portfolio quality, accessibility, and talent availability as what’s shaping decisions right now. If you’re investing or developing, growing REITs and development platforms, plus a likely comeback for foreign capital in H2 FY2027, are opening up more of the landscape.
Read the full India Mid-Year Market Outlook FY2027, check out more research on CBRE India Insights, browse available commercial spaces, or get in touch with CBRE India to talk through what you need.
