India’s office market is expected to outperform the wider Asia-Pacific region in 2026, supported by strong pre-leasing activity, improving asset quality and sustained occupier confidence, according to Knight Frank’s Asia-Pacific Office Highlights Q4 2025. While several regional markets are likely to face oversupply and muted demand from 2027 onward, India’s demand fundamentals are projected to support medium-term rental growth and capital value appreciation.

Across Asia-Pacific, more than 100 mn sq ft of new office space is expected to be delivered in 2026, which could push vacancy levels higher and temper rental growth. In contrast, India is forecast to absorb over 43 mn sq ft of new completions during the year without materially weakening rental momentum, reflecting its structurally stronger demand profile.

Tim Armstrong, Global Head of Occupier Strategy and Solutions, Knight Frank, noted that while Asia-Pacific’s long-term growth fundamentals remain intact, trade policy shifts are expected to create uncertainty in 2026. With new construction declining sharply from 2027, occupiers will face a tightening supply environment, rising costs and rapid technological change, making long-term, flexible and future-ready real estate strategies increasingly critical.

The flight-to-quality trend remains pronounced across the region, particularly in India, where occupiers are prioritising ESG-compliant buildings, flexible layouts and locations that support talent attraction and productivity.

Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said India’s office market has entered a phase of structurally stronger demand, with gross absorption across the top eight cities rising 20 per cent year-on-year to 86.4 mn sq ft. Global Capability Centres, third-party IT firms and financial services companies are expanding and committing early to high-quality developments, reinforcing India’s role in global business ecosystems.

Knight Frank forecasts prime office rents in India to grow 7–10 per cent in 2026, significantly ahead of most Asia-Pacific peers. India’s three largest office markets—Bengaluru, Mumbai and Delhi-NCR—together recorded around 50 mn sq ft of leasing in 2025, a 21 per cent year-on-year increase and the highest annual absorption on record for these markets.

Bengaluru led performance with 13.8 per cent annual prime rental growth and a 7.4 per cent quarter-on-quarter increase in Q4 2025, the strongest among tracked Asia-Pacific cities. Mumbai and Delhi-NCR also reported steady rental appreciation in prime micro-markets, driven by demand from financial services firms, flex office operators and global corporates consolidating into fewer, higher-quality locations.