New Delhi, April 18 (NationPress) India’s office sector is showing remarkable resilience amidst geopolitical uncertainties, with escalating rents and a scarcity of new supply bolstering growth in major urban centers, as per a report published on Saturday.

The study by real estate advisory firm Knight Frank emphasized that rental prices have consistently strengthened across significant markets, despite new office completions falling short of demand.

Leasing activity remained vigorous in the first quarter of 2026, with 18.8 million square feet leased in Bengaluru, Mumbai, and Delhi-NCR, reflecting a 3 percent rise from the same period last year.

Demand distribution across cities has become more balanced, indicating a developing and diversified office landscape.

However, new supply additions were limited, with merely 8.5 million square feet of office space completed in the quarter—less than half of the leasing volume. Developers are still prioritizing residential projects, which restricts new office inventory.

Additionally, the report highlighted that the narrowing demand-supply gap is likely to keep rental prices stable in the short term, particularly for prime office spaces that continue to draw interest from tenants.

Bengaluru witnessed the most significant rental growth, achieving a 14 percent year-over-year increase, marking the highest in the Asia-Pacific region. Mumbai and Delhi-NCR also demonstrated steady growth, with increases of 7.5 percent and 8.2 percent, respectively.

In leasing performance, Mumbai stood out with a quarterly high of 5.6 million square feet.

The report further indicated that Global Capability Centres (GCCs) are the main drivers of demand, alongside an uptick in leasing activity from domestic-focused firms.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, asserted that the office market is experiencing sustained demand, buoyed by both global and local tenants.

He noted that as supply additions lag behind leasing activity, and tenants focus on quality spaces, rental prices in premium office markets are expected to remain robust in the near to medium term.

Tim Armstrong, Global Head of Occupier Strategy and Solutions at Knight Frank, remarked that occupier confidence across the Asia-Pacific remains strong, despite geopolitical challenges.

He emphasized that companies are increasingly recognizing real estate as a strategic enabler for stability and long-term growth, with a growing preference for energy-efficient and strategically located office spaces.