India Defies Regional Slowdown; Office Leasing on Track for Record High in 2025

28 Oct 2025 CW Team

The surge has been fuelled by sustained leasing from Global Capability Centres (GCCs) and renewed activity from third-party IT service providers, reaffirming India’s status as a global business hub.

Despite the addition of nearly 9 million sq. ft. of new supply during the quarter, prime office rents across India’s top three markets rose by an average of 4.3% year-on-year (YoY), underscoring the market’s resilience. In contrast, several Asia-Pacific markets reported subdued rental growth as landlords prioritised occupancy amid elevated vacancy levels.

Market-wise performance:

 Bengaluru remained the standout performer, recording 2% QoQ and 8.8% YoY rent growth, driven by strong take-up in emerging hubs such as Outer Ring Road and Whitefield.

 Delhi-NCR saw 2% QoQ and 3% YoY growth, supported by stable occupier demand.

 Mumbai recorded 2% QoQ and 3.9% YoY growth, led by sustained activity in the BFSI and flex-space segments.

Vacancy rates remained manageable despite fresh completions — 11.5% in Bengaluru, 12.5% in Delhi-NCR, and 17.3% in Mumbai — as developers focused on quality, sustainable, and future-ready supply aligned with occupier preferences.

Regionally, while several Asia-Pacific markets grappled with rising vacancies and muted rents, India’s diversified occupier base, stable economy, and strong demand for premium spaces helped maintain momentum.

Knight Frank anticipates steady rental growth through 2026, supported by India’s digital economy initiatives, GCC expansion across Tier-I and Tier-II cities, and favourable macroeconomic fundamentals.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said:

“India’s office market continues to stand out as a beacon of stability and long-term potential amid regional uncertainty. The strong leasing activity underscores India’s central role in global business strategies. Continued GCC expansion and a revival in IT demand highlight the country’s deep talent pool, evolving infrastructure, and investor confidence. As occupiers embrace hybrid and flexible work models, India’s office ecosystem is transforming into a more dynamic, technology-led environment that will define the next phase of growth.”

India’s office market continues to outperform the broader Asia-Pacific region, emerging as a key growth driver amid regional headwinds, according to Knight Frank’s Asia-Pacific Office Highlights Q3 2025 report. With 8.8 million sq. ft. transacted in the third quarter alone, leasing momentum remains robust. Full-year volumes across Bengaluru, NCR, and Mumbai are projected to reach 50 million sq. ft., surpassing the previous record of 41 million sq. ft. set in 2024.The surge has been fuelled by sustained leasing from Global Capability Centres (GCCs) and renewed activity from third-party IT service providers, reaffirming India’s status as a global business hub.Despite the addition of nearly 9 million sq. ft. of new supply during the quarter, prime office rents across India’s top three markets rose by an average of 4.3% year-on-year (YoY), underscoring the market’s resilience. In contrast, several Asia-Pacific markets reported subdued rental growth as landlords prioritised occupancy amid elevated vacancy levels.Market-wise performance: Bengaluru remained the standout performer, recording 2% QoQ and 8.8% YoY rent growth, driven by strong take-up in emerging hubs such as Outer Ring Road and Whitefield. Delhi-NCR saw 2% QoQ and 3% YoY growth, supported by stable occupier demand. Mumbai recorded 2% QoQ and 3.9% YoY growth, led by sustained activity in the BFSI and flex-space segments.Vacancy rates remained manageable despite fresh completions — 11.5% in Bengaluru, 12.5% in Delhi-NCR, and 17.3% in Mumbai — as developers focused on quality, sustainable, and future-ready supply aligned with occupier preferences.Regionally, while several Asia-Pacific markets grappled with rising vacancies and muted rents, India’s diversified occupier base, stable economy, and strong demand for premium spaces helped maintain momentum.Knight Frank anticipates steady rental growth through 2026, supported by India’s digital economy initiatives, GCC expansion across Tier-I and Tier-II cities, and favourable macroeconomic fundamentals.Shishir Baijal, Chairman and Managing Director, Knight Frank India, said:“India’s office market continues to stand out as a beacon of stability and long-term potential amid regional uncertainty. The strong leasing activity underscores India’s central role in global business strategies. Continued GCC expansion and a revival in IT demand highlight the country’s deep talent pool, evolving infrastructure, and investor confidence. As occupiers embrace hybrid and flexible work models, India’s office ecosystem is transforming into a more dynamic, technology-led environment that will define the next phase of growth.”

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