India to Drive 40% of APAC's Grade A Office Supply by 2026; Bengaluru Leads the Way

India is poised to play a pivotal role in the Asia Pacific (APAC) office market, contributing about 40% to the Grade A office supply by 2026, according to a recent report by CBRE South Asia Pvt. Ltd. The report projects that the Grade A office supply in the APAC region will reach a record 61.3 million square feet in 2026, marking a 10.8% increase from 55.3 million square feet in 2025.

India and mainland China together will account for more than 75% of the total supply, underscoring the significant growth in these markets. Bengaluru, Delhi-NCR, and Mumbai are among the top five APAC markets for new office supply in 2026, with Bengaluru leading the pack at 12.1 million square feet. Shanghai will follow closely with 10 million square feet, while Delhi-NCR is expected to add 7.1 million square feet and Mumbai will see its supply almost double to 5.1 million square feet.

Bengaluru's office supply will be driven by the growth of Global Capability Centers (GCCs), which have become a key component of the city's commercial real estate landscape. These centers, often set up by multinational corporations, are crucial for driving innovation and talent attraction. The city's robust IT and tech ecosystem, coupled with a skilled workforce, makes it an attractive destination for companies looking to expand their operations.

Delhi-NCR and Mumbai are also experiencing significant growth, driven by a combination of economic factors and strategic investments. Mumbai's Bandra Kurla Complex (BKC) has recorded the highest rental growth in the APAC region, up 23.1% year-over-year in 2025, and is expected to maintain double-digit growth (12.5%) in 2026. This growth is a testament to the region's resilience and its ability to attract high-value investments.

Office assets have emerged as the most preferred investment sector in the APAC region, overtaking industrial and logistics for the first time in six years. This shift in investment preferences highlights the growing importance of commercial real estate in driving economic growth and attracting global businesses.

The CBRE South Asia report provides valuable insights into the trends shaping the APAC office market. With India at the forefront of this growth, cities like Bengaluru, Delhi-NCR, and Mumbai are well-positioned to capitalize on the opportunities presented by the increasing demand for Grade A office space. The robust supply and demand dynamics in these markets are expected to continue to drive economic development and investment in the region.