New Delhi, Jan 24 (NationPress) India's office market is poised to surpass its Asia‑Pacific counterparts in 2026, with projections indicating a growth of 7-10 percent in prime office rents, according to a report.

The analysis by real estate service provider Knight Frank highlights that India has emerged as the growth engine for the region, showing early signs of recovery after two years of declining rents.

This growth is bolstered by robust leasing activity, the proliferation of Global Capability Centres (GCC), and an increased demand for high-quality, future-ready office environments.

In 2025, the three largest office markets in India—Bengaluru, Mumbai, and Delhi-NCR—recorded approximately 50 million sq ft of leasing, representing a 21 percent year-on-year increase and the highest annual absorption rate ever noted in these markets, the report revealed.

Bengaluru led the regional performance with a remarkable 13.8 percent annual growth in prime rents and a 7.4 percent quarter-on-quarter increase in Q4 2025, marking the city's most successful year on record for leased area.

Total leasing commitments in these three cities hit a record high of 50 million sq ft in 2025, driven by GCCs, flexible workspace operators, and IT outsourcing entities, with rents increasing by 5.8 percent year-on-year.

Both Mumbai and Delhi-NCR also experienced consistent rental growth in prime micro-markets, fueled by heightened interest from financial services, flexible operators, and global corporations aiming for superior-quality locations.

In contrast, Asia‑Pacific is expected to see over 100 million sq ft of new office space coming online in 2026, which may lead to increased vacancy rates and subdued rent growth. However, India's market fundamentals are expected to absorb over 43 million sq ft of completions in 2026 without significantly weakening rental momentum, as per the firm's projections.

Shishir Baijal, International Partner, Chairman, and Managing Director of Knight Frank India, indicated that occupier demand is anticipated to remain robust in 2026, with a higher volume of supply aiding market traction throughout the year.

"Global Capability Centres, third-party IT firms, and financial services companies are not only expanding their footprints but are also making early commitments to premium developments," Baijal added.