Is India Leading the Office Market Performance in Asia for Q2 2025?
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Synopsis
India's office market is booming! With Bengaluru, Delhi-NCR, and Mumbai leading the charge, Q2 2025 has set unprecedented leasing records. Discover how these cities are reshaping the Asia-Pacific office landscape and what this means for the global real estate sector.
Key Takeaways
- Record leasing volume of 12.7 million square feet in Q2 2025.
- Bengaluru remains the top performer in office leasing.
- Prime rents increased by 4.5% YoY across major markets.
- Delhi-NCR reached a new leasing milestone of 7.2 million square feet.
- Improved vacancy rates in both Delhi-NCR and Mumbai.
Mumbai, July 17 (NationPress) India’s three major office markets — Bengaluru, Delhi-NCR, and Mumbai — exhibited an outstanding performance in the Asia-Pacific region during the second quarter of 2025 (Q2 2025), achieving the highest leasing volume for a second quarter ever, according to a report released on Thursday.
These three cities collectively leased 12.7 million square feet in Q2, reflecting a remarkable 20% year-on-year (YoY) increase, as detailed in Knight Frank’s ‘Asia-Pacific Q2 2025 Office Highlights’ report.
This surge in leasing activity led to a notable increase in prime office rents, which saw an average rise of 4.5% YoY across the three markets.
Bengaluru emerged as the leading city, propelled by Global Capability Centres (GCCs), while Delhi-NCR and Mumbai also maintained their growth in leasing activities and rental values, as noted in the report.
Delhi-NCR and Mumbai ranked 6th and 7th, respectively, in the Asia-Pacific Prime Office Rental Index.
"India’s office market continues to demonstrate a significant growth trajectory. The record leasing figures in the second quarter across our top cities underscore the strategic importance of India in global real estate investments," stated Shishir Baijal, Chairman & Managing Director of Knight Frank India.
Delhi-NCR achieved a new milestone in H1 2025, with total office space leased reaching 7.2 million square feet, marking the highest ever registered for the city.
"Prime rents increased 0.9% YoY to Rs 343 per sq ft per month. The vacancy rate was 12%, and rental values remained stable throughout the quarter," the report indicated.
On the other hand, Mumbai experienced a 7% YoY rise in prime rents, reaching Rs 323 per sq ft per month, making it the second highest in India.
Simultaneously, the vacancy rate decreased to 17.4%, down from 19.7%Bengaluru retained its title as India’s most active office market, with 18.2 million square feet leased in the first half of 2025, already surpassing 2024’s total volume.
While the leasing momentum in Q2 2025 was strongest in India, there were signs of stabilization in the broader Asia-Pacific office market. For the first time in nearly three years, regional prime rents saw a 0.2% increase on a quarter-over-quarter (QoQ) basis, according to the report.
Point of View
I believe that India’s remarkable office market performance in Q2 2025 highlights its growing significance on the global stage. The consistent growth in leasing volumes and rental values indicates a robust economic environment, making India an attractive destination for investment.
NationPress
17/07/2025
Frequently Asked Questions
What contributed to the rise in office leasing in India?
The increase in leasing was driven primarily by the activities of Global Capability Centres (GCCs) and a growing demand for office space in major cities.
How did rental values change in Q2 2025?
Prime office rents rose by an average of 4.5% year-on-year across major markets, indicating a strong demand for commercial real estate.
What are the vacancy rates in major cities?
Delhi-NCR had a vacancy rate of 12%, while Mumbai's rate decreased to 17.4%, showcasing improved demand for office spaces.
