India to Lead Asia-Pacific Office Market in 2026 with Prime Rents Rising 7-10%
India's office market is set to outperform the Asia-Pacific region in 2026, with prime office rents forecast to grow 7-10 per cent, a report has said. The report from real estate services firm Knight Frank stated that India has emerged as the region's growth engine, showing early signs of stabilisation after two years of rental declines.
The growth is supported by strong leasing momentum, the expansion of Global Capability Centres (GCC), and rising demand for high-quality and future-ready office space. India's three largest office markets—Bengaluru, Mumbai, and Delhi-NCR—collectively recorded about 50 million sq ft of leasing in 2025, up 21 per cent year-on-year, with the highest annual absorption on record across these markets, the report said.
Bengaluru led regional performance with 13.8 per cent annual prime rental growth and a 7.4 per cent quarter-on-quarter rise in Q4 2025, with CY2025 marked as the city's most prolific year on record in terms of area leased. Total leasing commitments across these three markets reached a record 50 million sq ft in 2025, driven by GCCs, flex operators, and IT outsourcing firms, and rents rose 5.8 per cent YoY, the report said.
Mumbai and Delhi-NCR also saw steady rental appreciation in prime micro-markets and rising interest from financial services, flex operators, and global corporates consolidating into higher-quality locations. Across Asia-Pacific, over 100 million sq ft of new office space is expected in 2026, likely pushing regional vacancy and muting rental growth, while India's fundamentals should absorb over 43 million sq ft of completions in 2026 without materially weakening rental momentum, the firm forecasted.
Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said occupier demand is expected to remain strong in 2026 with higher supply volumes supporting market traction during the year. 'Global Capability Centres, third-party IT businesses and financial services firms are not only expanding but also committing early to high-quality developments,' said Baijal.
