Has India’s Office Leasing Reached Unprecedented Heights, Surpassing Asian Competitors?
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Synopsis
India’s office leasing market has reached astonishing heights, surpassing previous records and outperforming Asian competitors. With a forecast of continued growth and rising rents, this dynamic landscape reflects a resilient economy and diverse tenant base. Discover how India is reshaping the office leasing scene in the Asia-Pacific region.
Key Takeaways
- India's office leasing reached 8.8 million sq ft in Q3 2025.
- Full-year leasing volumes expected to hit 50 million sq ft.
- Prime office rents rose 4.3% YoY across major cities.
- Bengaluru showed the highest rent increase of 8.8% YoY.
- Vacancy rates remain stable despite new completions.
New Delhi, Oct 24 (NationPress) India's office leasing sector has shown remarkable resilience, outpacing the Asia-Pacific region in Q3 2025 with a remarkable 8.8 million square feet of leasing activity, according to a report released on Friday. Full-year leasing volumes from Bengaluru, NCR, and Mumbai are anticipated to hit 50 million sq ft, eclipsing the previous record of 41 million sq ft achieved in 2024, as highlighted by the real estate services firm Knight Frank.
This surge in leasing activity has resulted in prime rents increasing by 4.3 percent year-over-year in major cities, despite a significant influx of new supply, the report indicated.
According to Knight Frank, 'Despite an influx of nearly 9 million square feet of new supply this quarter, prime office rents across India's three largest markets – Bengaluru, NCR, and Mumbai – have increased by an average of 4.3 percent year-over-year, underscoring the market's robust health.'
In contrast, the APAC region experienced a 1.4 percent year-over-year decline in prime office rents, with rental growth stagnating at 0.0 percent quarter-over-quarter, down from 0.2 percent in Q2 2025.
The upswing in leasing volumes in India can be attributed to commitments from global capability centers and a resurgence in third-party IT services.
Bengaluru led the charge, with prime rents climbing 8.8 percent year-over-year and 2 percent quarter-over-quarter, fueled by demand in regions like Outer Ring Road and Whitefield. Delhi-NCR and Mumbai both reported a 2 percent quarter-over-quarter increase, with year-over-year growth of 3 percent and 3.9 percent, respectively.
In contrast, several Asia-Pacific markets experienced subdued rental growth as landlords focused on maintaining occupancy amidst high vacancy rates. India's robust performance demonstrates a resilient occupier base, a diverse tenant profile, and a stable economic outlook, according to the report.
While vacancy rates have slightly increased due to new completions, they remain stable at approximately 11.5 percent in Bengaluru, 12.5 percent in Delhi, and 17.3 percent in Mumbai.
Knight Frank has projected that India's office market will continue to experience steady rental growth through 2026, buoyed by strong economic fundamentals, government-led digital initiatives, and the expansion of GCCs in Tier-I and emerging Tier-II cities.
Point of View
It's clear that India's office market demonstrates extraordinary resilience and adaptability. The impressive leasing activity underscores a strong economic foundation and a diverse tenant landscape. This performance not only highlights India’s potential but also establishes it as a pivotal player in the Asia-Pacific region, making it essential for stakeholders to stay informed and engaged in this evolving market.
NationPress
24/10/2025
Frequently Asked Questions
What factors are driving India's office leasing growth?
India's office leasing growth is primarily driven by commitments from global capability centers and a revival in third-party IT services, along with a stable economic outlook.
How do India's vacancy rates compare to the Asia-Pacific region?
India's vacancy rates are relatively stable, with Bengaluru at approximately 11.5%, Delhi at 12.5%, and Mumbai at 17.3%, which is favorable compared to many Asia-Pacific markets.
What is the outlook for India's office market in the coming years?
Knight Frank forecasts that India's office market will continue to see steady rental growth through 2026, supported by strong economic fundamentals and government-led initiatives.
