India's Office Market Thrives Amidst Asia-Pacific Slump

As office markets across Asia-Pacific navigate slower growth and rising uncertainty, India is emerging as a clear outlier. Leasing activity remains strong, driven by sustained Global Capability Centers (GCCs) expansion, the tech sector, and demand consolidation into Grade A buildings. Prime office markets continue to show rental resilience even as several regional peers in Asia face moderation. India’s scale, talent base, affordability, and a demand-led supply pipeline are keeping the country’s office market structurally ahead of the region.

Office Leasing India's office leasing is expected to cross 80 million square feet in 2025, among the highest leasing volumes in Asia-Pacific. This growth is fueled by the expansion of GCCs, which are increasingly setting up operations in India due to the country's large talent pool and competitive costs. The tech sector also plays a significant role, with major tech companies expanding their footprint in the country.

Grade A Office Stock India has crossed the 1 billion square feet mark of Grade A-led office stock in 2025, with Grade A stock now accounting for over 50% of total supply. This shift towards higher-quality office spaces reflects a growing preference among tenants for modern, well-equipped buildings that offer better working conditions and amenities. The increase in Grade A stock is also a sign of the maturing and professionalizing of India's commercial real estate market.

Rental Growth Outlook (2026) Bengaluru, Mumbai, and NCR are expected to see 7.5% year-over-year rental growth in 2026. These cities rank among the top rental growth markets in Asia-Pacific. The rental growth is driven by the strong demand for office space, particularly in these key cities, which are home to many tech companies and GCCs.

Leasing Preferences (2026) Rising demand for: - Shorter lease tenures - Expansion-ready floors - Managed office formats - Hybrid-fit solutions

These preferences reflect the changing needs of businesses, especially in the tech and GCC sectors. Companies are looking for more flexible and scalable office solutions that can adapt to their evolving business requirements.

City Concentration Bengaluru, Mumbai, and NCR remain the top demand centers. These three markets continue to dominate leasing, rental performance, and tenant preference. Bengaluru, often referred to as the Silicon Valley of India, is particularly attractive due to its robust tech ecosystem and talent pool. Mumbai, the financial capital, and NCR, with its large corporate presence, are also key markets for office leasing.

Cost Benchmark Rentals remain below $1 per square foot per month in several major Indian office markets. This reinforces India’s position as a cost-competitive consolidation hub. The affordability of office space, combined with the availability of skilled talent, makes India an attractive destination for companies looking to expand or consolidate their operations.

In conclusion, India’s office market is well-positioned to continue its strong performance, driven by its unique combination of scale, talent, and affordability. As the region faces challenges, India’s robust fundamentals make it a standout market for office leasing and investment.