India office market beats APAC trend
India’s office sector recorded 8.8 million square feet of leasing in the third quarter of 2025, outpacing broader Asia-Pacific markets. Knight Frank projects that Bengaluru, the National Capital Region and Mumbai will reach 50 million square feet in full-year leasing, exceeding the 2024 record of 41 million square feet. Prime office rents across these three markets rose 4.3 percent from a year earlier despite 9 million square feet of new space entering the market.
Bengaluru posted the strongest gains with rents climbing 8.8 percent annually and 2 percent from the previous quarter. The National Capital Region and Mumbai each saw 2 percent quarterly increases. Global capability centers and technology service providers drove demand across major cities.
Vacancy rates held at 11.5 percent in Bengaluru, 12.5 percent in the National Capital Region and 17.3 percent in Mumbai. Knight Frank expects steady rent growth through 2026, driven by economic stability and digital expansion. The Asia-Pacific region saw rents fall 1.4 percent annually with flat quarterly growth.
