India’s office market is projected to surpass the Asia-Pacific region in 2026, with prime office rents expected to increase by 7-10%, as per a report by real estate services firm Knight Frank. The country has become a key growth driver in the region, showing signs of stabilization after two years of rental declines. This growth is fueled by robust leasing activity, the expansion of Global Capability Centres (GCC), and a growing demand for modern office spaces.
The three major office markets in India – Bengaluru, Mumbai, and Delhi-NCR – collectively saw a leasing of about 50 million sq ft in 2025, marking a 21% year-on-year increase and the highest annual absorption on record. Bengaluru led the region with a 13.8% annual prime rental growth and a 7.4% quarter-on-quarter rise in Q4 2025, making it the city’s most active year in terms of leased area.
Total leasing commitments in these markets hit a record 50 million sq ft in 2025, driven by GCCs, flexible operators, and IT outsourcing companies, with rents rising by 5.8% year-on-year. Mumbai and Delhi-NCR also experienced steady rental growth in prime micro-markets, attracting interest from financial services, flexible operators, and global corporations moving to premium locations.
In the broader Asia-Pacific region, an estimated 100 million sq ft of new office space is anticipated in 2026, potentially increasing regional vacancy rates and moderating rental growth. However, India is expected to absorb over 43 million sq ft of completions in 2026 without significantly impacting rental growth, according to Knight Frank’s forecast. Shishir Baijal, International Partner, Chairman, and Managing Director of Knight Frank India, highlighted that strong occupier demand is foreseen in 2026, with increased supply volumes bolstering market activity.
