Domestic occupiers claim their biggest office share in nine quarters, JLL finds

India's office market absorbed 37.9 million sq ft of gross leasing in the first half of 2026, and the June quarter's 16.45 million sq ft revealed a shift in who is signing, JLL reported on July 14. Domestic occupiers took 47.3 per cent of quarterly leasing, their highest share in nine quarters, powered by flex-space operators at 28.4 per cent, with tech at 28.8 per cent leading sectors overall.

Global Capability Centres remain the structural engine, leasing 15.8 million sq ft in the half and tracking toward another record year. But global firms used the quarter to right-size portfolios amid AI-driven restructuring and geopolitical caution, and national gross leasing slipped about 3.9 per cent from a year earlier. Net absorption, though, hit a decade high of 26.9 million sq ft for the half — occupiers are moving in and filling space faster than they are signing fresh deals.

Why it matters for Mumbai: the city posted record first-half leasing, and a rising domestic-and-flex mix tends to broaden demand beyond large single-tenant deals in the traditional core toward managed offices in districts like Powai, Thane and Navi Mumbai. For commercial landlords, tenant mix — not just headline take-up — is quietly becoming the variable to manage.

JLL frames the moment as maturity rather than retreat: companies are aligning space with long-term headcount plans, with India still the focal point of global expansion.