Office leasing in Bengaluru, Delhi-NCR and Mumbai to touch 50 million sq ft in 2025 driven by strong GCC demand

India’s office market stood out in the Asia-Pacific region, defying regional slowdown with strong growth across key cities. Bengaluru, Delhi-NCR, and Mumbai recorded an average 4.3% annual rise in prime office rentals during July–September. Office space leasing across these cities is projected to reach 50 million sq ft in 2025, surpassing the 2024 record of 41 million sq ft, driven largely by strong demand from Global Capability Centres, a report by Knight Frank has said.

Despite a supply influx of nearly 9 mn square feet during the quarter, prime office rents across India’s three largest office markets, Bengaluru, NCR, and Mumbai rose an average of 4.3% YoY, highlighting the market’s enduring strength.

Office leasing momentum in India remained robust, with 8.8 mn sq ft transacted in the third quarter alone. Full-year leasing volumes of Bengaluru, NCR and Mumbai together, are expected to touch 50 mn sq ft, surpassing the previous record of 41 mn sq ft set in 2024, the report said.

The surge is fuelled by sustained leasing commitments from Global Capability Centres (GCCs) and a revival in third-party IT services, highlighting India’s attractiveness as a global business hub, according to Knight Frank’s Asia-Pacific Office Highlights Q3 2025 report.

According to the report, India’s prime rents increased 4.3% YoY on average across the three major cities. Bengaluru remained the most dynamic market, posting 2% QoQ growth and 8.8% YoY, with strong take-up in emerging corridors such as Outer Ring Road and Whitefield.

Delhi-NCR followed with 2% QoQ and 3% YoY growth, while Mumbai recorded 2% QoQ and 3.9% YoY, the report showed.

Rents in Bengaluru’s central business district stood at ₹1,807 per sq ft per year, while Mumbai’s BKC commands ₹3,953 and Delhi’s Connaught Place ₹4,200 per sq ft per year.

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The vacancy rate edged up marginally due to the new completions but remains in check at 11.5% in Bengaluru, 12.5% in Delhi-NCR, and 17.3% in Mumbai.

Knight Frank expects India’s office market to maintain steady rental growth through 2026, supported by sustained economic fundamentals, government-led digital initiatives, and the expansion of GCCs across Tier-I and emerging Tier-II cities.

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Shishir Baijal, chairman and managing director, Knight Frank India, said, “India’s office market continues to stand out as a beacon of stability and long-term potential amid regional uncertainty. The strong leasing activity highlights its growing importance in global business strategies. Continued interest from GCCs and renewed activity in the IT sector point to India’s deep talent pool, improving infrastructure, and investor trust. As occupiers embrace flexible and hybrid work models, the Indian office landscape is evolving into a more dynamic, tech-driven ecosystem that will define the next phase of growth. ”

Across the APAC region, prime office rents fell 1.4% YoY, with rental growth flatlining at 0.0% QoQ, down from 0.2% in Q2 2025. The steeper declines in Chinese mainland markets and flatlined rental growth in Southeast Asia offset continued strength in Australia and India, highlighting growing divergence across the region. The data shows 16 of 23 monitored cities reported stable or increasing rents year-on-year, down from 17 cities in Q2, the report added.