India’s office market is set to outperform the Asia-Pacific region in 2026, with prime office rents forecast to grow 7–10%, UK based consultant Knight Frank said on Friday.
“While Asia-Pacific office markets are showing early signs of stabilisation after two years of rental declines, India has emerged as the growth engine of the region, supported by strong leasing momentum, sustained expansion of global capability centres (GCCs), and increasing preference for high-quality, future-ready office spaces,” the consultant said.
GCC Factor
The country’s three largest office markets—Bengaluru, Mumbai and Delhi-NCR—collectively recorded nearly 50 million sq ft of leasing in 2025, marking a 21% year-on-year increase and the highest annual absorption ever recorded across these markets. Bengaluru led regional performance, registering 13.8% annual prime rental growth and a sharp 7.4% quarter-on-quarter increase in Q4 2025, the strongest among all tracked Asia-Pacific cities, it said.
For Bengaluru, 2025 marked the most prolific year on record in terms of area leased, while annual take up in Mumbai and NCR was second only to 2024 levels. Beyond global capability centres, demand was also supported by flex office operators and the information technology outsourcing sector. This sustained demand translated into upward pressure on rents, which rose 5.8% year-on-year in 2025, it added.
Rental Momentum
Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said, “India’s office market has decisively moved into a phase of structurally stronger demand with gross absorption surpassing the last year’s peak by 20% closing at 86.4 mn sq ft for top eight cities. GCCs, third party IT businesses and financial services firms are not only expanding but also committing early to high-quality developments. This confidence reflects India’s growing role in global business ecosystems.,” he said.
Occupier demand is expected to remain strong in 2026 with higher supply volumes supporting market traction during the year. For occupiers and investors alike, India remains one of the most compelling office markets globally, he said.
With Asia-Pacific office supply expected to decline sharply from 2027 onward, India’s current cycle of strong pre-leasing, improving asset quality and sustained occupier confidence positions it favourably for medium-term rental growth and capital value appreciation, even as other regional markets contend with oversupply and muted demand, it said.