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India's major office hubs-Bengaluru, Delhi-NCR, and Mumbai-witnessed an average 4.3% annual rise in prime workspace rentals during the past quarter, according to Knight Frank. The consultancy indicated that combined office leasing across these cities is projected to reach nearly 50 million sq ft in the upcoming year, surpassing the previous record achieved in 2024. The growth has been attributed to the sustained demand from Global Capability Centres (GCCs), a revival in third-party IT services, and robust institutional investment.
India's primary office markets-Bengaluru, Delhi-NCR, and Mumbai-recorded an average 4.3% annual increase in prime office rents during the July-September period, as reported by real estate consultancy Knight Frank. The firm stated that overall leasing activity across these three cities is anticipated to touch 50 million sq ft in the upcoming year, exceeding the earlier record of 41 million sq ft registered in 2024. Advertisement
The consultancy observed that the rise in activity has been driven by persistent leasing commitments from Global Capability Centres (GCCs) and a recovery in third-party IT services, reinforcing India's growing reputation as a global business destination.
In terms of rental performance, Knight Frank noted that prime office rents across the three markets rose 4.3% year-on-year on average. Bengaluru continued to lead the market, posting 2% quarter-on-quarter growth and 8.8% year-on-year increase, primarily supported by rising demand in corridors such as the Outer Ring Road and Whitefield.
Delhi-NCR registered 2% quarterly and 3% annual growth in rentals, while Mumbai saw a similar 2% quarterly rise and a 3.9% yearly increase during the same period. The consultancy highlighted that annual rental values in Bengaluru's central business district stood at INR 1,807 per sq ft, while Mumbai's Bandra-Kurla Complex (BKC) commanded INR 3,953 and Delhi's Connaught Place recorded INR 4,200 per sq ft.
Knight Frank India's Chairman and Managing Director, Shishir Baijal, remarked that India's office market remained a symbol of stability and long-term promise in an otherwise uncertain regional environment. He added that the strong leasing activity reflected the country's increasing role in global corporate strategies.
Real estate expert Sankey Prasad observed that the Indian office market was entering a new growth phase, supported by sustained leasing momentum, expanding GCC operations, and a rise in institutional investments. He noted that occupiers were increasingly favouring high-quality, sustainable workspaces, while investors were drawn to the market's stable yields and transparency.
James Thomas, Co-Founder of SpazeOne, commented that the projected leasing growth across these three major cities indicated strong optimism and business confidence in India's commercial property landscape. Meanwhile, Knight Frank's report mentioned that office rentals across the Asia-Pacific region had declined 1.4% during the third quarter of 2025, largely due to falling rents in mainland China.
The Knight Frank report underscored the resilience of India's office markets, which continue to outperform regional peers amid global economic uncertainty. Sustained expansion by GCCs, renewed IT activity, and rising investor confidence have positioned Bengaluru, Delhi-NCR, and Mumbai as preferred destinations for international occupiers. With leasing volumes expected to set new records in the coming year, the outlook for India's commercial real estate sector remains notably optimistic and stable.
Source - PTI
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