India's Office Market Resilience: Bengaluru Leads APAC Rental Growth

Knight Frank's report highlights Bengaluru's soaring 14% year-on-year growth in prime office rents, leading the Asia Pacific region. Mumbai and Delhi-NCR also posted notable increases. Demand remains strong across India despite geopolitical challenges, with leasing activity becoming more diversified geographically in Q1 2026.

Knight Frank's latest report, 'Asia Pacific Research, Office Markets - Q1 2026', indicates that Bengaluru experienced the highest year-on-year growth in prime office rents across the Asia Pacific, surging by 14% in the first quarter of 2026. This performance underscores the resilience of India's office markets within the region.

Mumbai and Delhi-NCR also witnessed substantial rent growth of 7.5% and 8.2% respectively during the same period. Of the 24 prime markets tracked, 18 reported increased rents, maintaining recovery momentum despite geopolitical tensions in the Middle East, with regional rents rising by 0.8% quarter-on-quarter.

The report identifies sustained demand from India and Australia as key drivers. Leasing activity was robust, with a total of 18.8 million square feet transacted in major Indian cities. Mumbai achieved a record leasing volume of 5.6 million square feet during the quarter. The diversification of demand across geographical markets marks a maturing evolution supported by both global and domestic players.

(With inputs from agencies.)