India’s office market has shown stronger momentum than the broader Asia Pacific region in the third quarter of 2025, recording 8.8 million square feet of leasing activity, according to a report released on October 24. This performance stands out at a time when several markets across the region are seeing slower demand.
The report from real estate services firm Knight Frank states that the combined full year leasing volumes in Bengaluru, the National Capital Region, and Mumbai are projected to reach 50 million square feet. This would surpass the previous record of 41 million square feet achieved in 2024. The rise in demand has also pushed up prime rents across these major cities, even though new supply continues to enter the market.
“Despite a supply influx of nearly 9 mn square feet during the quarter, prime office rents across India’s three largest office markets Bengaluru NCR and Mumbai rose an average of per cent YoY, highlighting the market’s enduring strength,” the report said.
Across the Asia Pacific region overall, prime office rents declined per cent year on year, while quarter on quarter growth remained flat compared to earlier quarters. The report indicates that India’s leasing activity has benefited from increased commitments by global capability centers and renewed demand from third party IT services firms.
Bengaluru led the growth trend, with prime rents rising percent year over year and percent quarter over quarter, supported by strong interest in business hubs such as Outer Ring Road and Whitefield. Delhi NCR and Mumbai also reported per cent quarter on quarter rental growth, alongside year on year gains of percent and percent respectively.
While new office completions caused vacancy rates to edge up slightly, they remain controlled at around per cent in Bengaluru, per cent in Delhi, and per cent in Mumbai. These stable vacancy levels indicate healthy absorption rates and sustained interest from occupiers.
The report further suggests that India’s office market is likely to maintain steady rental growth through 2026. This outlook is supported by robust economic conditions, expanding global capability centers, and continued government emphasis on digital development across major and emerging cities.
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