Is India Leading the Office Market in Asia-Pacific for Q2 2025?
Click to start listening
Synopsis
In an impressive showcase of growth, India's major office markets have set a record for leasing volume in Q2 2025. Discover how Bengaluru, Delhi-NCR, and Mumbai are transforming the Asia-Pacific office landscape and what this means for investors and businesses alike.
Key Takeaways
- India's office markets achieved record leasing volumes in Q2 2025.
- Bengaluru remains the leading city, driven by GCCs.
- Delhi-NCR and Mumbai show significant growth in leasing activity.
- Prime office rents increased by 4.5 percent YoY.
- Vacancy rates are declining in major cities.
Mumbai, July 17 (NationPress) India’s top three office markets -- Bengaluru, Delhi-NCR, and Mumbai -- showcased an impressive performance in the Asia-Pacific region during the second quarter of 2025 (Q2 2025), achieving the highest second-quarter leasing volume ever recorded, as highlighted in a report released on Thursday.
The combined leasing activity across these three cities reached 12.7 million square feet in Q2, marking a 20 percent year-on-year (YoY) increase, according to Knight Frank’s ‘Asia-Pacific Q2 2025 Office Highlights’ report.
This surge in leasing activity contributed to a significant uptick in prime office rents, which experienced a 4.5 percent YoY average increase across the three markets.
Bengaluru was the standout city, propelled by its Global Capability Centres (GCCs), while Delhi-NCR and Mumbai sustained their upward momentum in leasing activity and rental values, as per the report.
Delhi-NCR and Mumbai secured the 6th and 7th positions, respectively, in the Asia-Pacific Prime Office Rental Index.
"India’s office market is exhibiting a remarkable growth trajectory. The record second-quarter leasing across our key cities underscores India's strategic importance in global real estate portfolios," remarked Shishir Baijal, Chairman & Managing Director, Knight Frank India.
Delhi-NCR achieved a new milestone in H1 2025, with 7.2 million square feet of office space leased, the highest ever for the city.
"Prime rents rose 0.9 percent YoY to Rs 343 per sq ft per month. The vacancy rate was 12 percent, and rental values remained stable during the quarter," stated the report.
Meanwhile, Mumbai saw a 7 percent YoY increase in prime rents, reaching Rs 323 per sq ft per month, making it the second highest in India.
The vacancy rate in Mumbai stood at 17.4 percent, down from 19.7 percent last year. Bengaluru continued to be India’s most active office market, leasing 18.2 million square feet in the first half of 2025, surpassing the full-year volume of 2024.
While India displayed the strongest leasing momentum in Q2 2025, there were also signs of stabilization in the broader Asia Pacific office market. For the first time in nearly three years, regional prime rents increased by 0.2 percent on a quarter-over-quarter (QoQ) basis, according to the report.
Point of View
It is evident that India's office market is on an unprecedented growth trajectory. As major cities set new leasing records, it is crucial for stakeholders to adapt and align with these trends to leverage the opportunities presented within this thriving economy.
NationPress
17/07/2025
Frequently Asked Questions
What is the leasing volume in India for Q2 2025?
India's three largest office markets leased a total of 12.7 million square feet in Q2 2025, marking a 20 percent year-on-year increase.
Which city is the top performer in office leasing?
Bengaluru is currently the top-performing city, driven primarily by Global Capability Centres.
What are the trends in office rents?
Prime office rents rose by an average of 4.5 percent year-on-year across the three major markets.
What was the vacancy rate in Mumbai?
Mumbai's vacancy rate stood at 17.4 percent, a decrease from 19.7 percent from the previous year.
How does India compare with the Asia-Pacific region?
While India showed the strongest leasing momentum, the larger Asia-Pacific office market is also stabilizing, with regional prime rents increasing for the first time in nearly three years.
