India Office Rents Rise As Bengaluru Leads APAC Growth
ECONOMY & POLICY

India Office Rents Rise As Bengaluru Leads APAC Growth

India's major office markets maintained healthy occupier demand in the second quarter of 2026, with Bengaluru, Mumbai and Delhi-NCR collectively leasing 9.8 million (mn) sq ft of space, Knight Frank's Q2 2026 Asia-Pacific Office Highlights reported. Leasing eased from 2025's exceptionally high base but remained firm despite more than 7 mn sq ft of new completions during the quarter. Vacancy levels stayed stable, indicating the market absorbed fresh supply.

Prime office rents rose across the three markets, led by Bengaluru where rents increased 10.7 per cent year-on-year to Rs 163 per sq ft per month in Q2 2026, up from Rs 148 in the year-ago quarter. Delhi-NCR recorded a 7.6 per cent annual rise to Rs 369 per sq ft per month, placing it sixth in the Asia-Pacific, while Mumbai's prime rents rose four per cent to Rs 335 per sq ft per month, ranking eighth in the region.

Flexible workspace operators accounted for over 30 per cent of leasing volumes across Bengaluru, Delhi-NCR and Mumbai, overtaking financial services and signalling a structural shift in occupier strategies towards agility and flexible arrangements. Knight Frank reported that across the Asia-Pacific region prime office rents rose 0.6 per cent quarter-on-quarter in Q2 2026, with 19 of the 24 tracked cities recording stable or higher rental levels and Bengaluru, Hong Kong SAR and Tokyo leading annual growth.

Knight Frank cautioned that tightening supply and moderating development pipelines were making it harder for occupiers to find suitable space in preferred locations, and that demand was broadening beyond traditional sectors into AI and innovation ecosystems which could intensify competition for high-quality office space. The consultancy added that global capability centres continued to anchor demand in India, supported by the country's talent pool and competitive operating environment, and that flight-to-quality and sustainability credentials would drive outperformance.

India's major office markets maintained healthy occupier demand in the second quarter of 2026, with Bengaluru, Mumbai and Delhi-NCR collectively leasing 9.8 million (mn) sq ft of space, Knight Frank's Q2 2026 Asia-Pacific Office Highlights reported. Leasing eased from 2025's exceptionally high base but remained firm despite more than 7 mn sq ft of new completions during the quarter. Vacancy levels stayed stable, indicating the market absorbed fresh supply. Prime office rents rose across the three markets, led by Bengaluru where rents increased 10.7 per cent year-on-year to Rs 163 per sq ft per month in Q2 2026, up from Rs 148 in the year-ago quarter. Delhi-NCR recorded a 7.6 per cent annual rise to Rs 369 per sq ft per month, placing it sixth in the Asia-Pacific, while Mumbai's prime rents rose four per cent to Rs 335 per sq ft per month, ranking eighth in the region. Flexible workspace operators accounted for over 30 per cent of leasing volumes across Bengaluru, Delhi-NCR and Mumbai, overtaking financial services and signalling a structural shift in occupier strategies towards agility and flexible arrangements. Knight Frank reported that across the Asia-Pacific region prime office rents rose 0.6 per cent quarter-on-quarter in Q2 2026, with 19 of the 24 tracked cities recording stable or higher rental levels and Bengaluru, Hong Kong SAR and Tokyo leading annual growth. Knight Frank cautioned that tightening supply and moderating development pipelines were making it harder for occupiers to find suitable space in preferred locations, and that demand was broadening beyond traditional sectors into AI and innovation ecosystems which could intensify competition for high-quality office space. The consultancy added that global capability centres continued to anchor demand in India, supported by the country's talent pool and competitive operating environment, and that flight-to-quality and sustainability credentials would drive outperformance.

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