New Delhi, Aug 17 (IANS) India’s leading office markets continued to record healthy occupier demand in Q2 2026, with Bengaluru, Mumbai and Delhi‑NCR collectively leasing 9.8 million square feet of office space, a report said on Monday.
The report from Knight Frank said leasing moderated from the exceptionally high levels seen in 2025, but remained robust, supported by stable vacancy levels despite over 7 million square feet of new completions.
Bengaluru recorded the strongest rental growth among Indian cities at 10.7 per cent YoY, followed by Delhi-NCR at 7.6 per cent and Mumbai at 4 per cent.
Prime office rents in Bengaluru reached Rs 163 per sq ft per month. Prime rents of Bengaluru’s office market grew 7.9 per cent YoY to Rs 148 per sq ft per month in Q2 2025.
Global Capability Centres (GCCs) continued to anchor occupier demand across India’s gateway office markets. Further, flex space operators accounted for over 30 per cent of leasing volumes across Bengaluru, Delhi-NCR and Mumbai, overtaking financial services as one of the largest occupier groups.
The increasing adoption of flexible workplace strategies by large occupiers reflects a structural shift in portfolio planning as organisations seek greater agility while navigating evolving workplace requirements.
Across the Asia-Pacific region, prime office rents increased 0.6 per cent QoQ during Q2 2026, with 19 of the 24 tracked cities recording stable or increasing rental levels.
Bengaluru, Hong Kong SAR and Tokyo led annual rental growth across the region, while technology and AI-related occupier companies continued to generate demand for premium office space.
“India’s office market continues to demonstrate remarkable depth and resilience. Demand remains healthy despite the elevated leasing base established last year, reflecting the country’s enduring appeal as a global business destination,” said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.
Baijal said that stable vacancy levels alongside rental growth indicates a market that continues to absorb new supply efficiently.
“While organisations continue to adapt to AI adoption and evolving macroeconomic conditions, India’s talent advantage, business ecosystem and strategic role in global corporate operations continue to underpin long-term office demand,” he added.
—IANS
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