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India Office Leasing Set for Record Year in 2025

2025-10-24

India’s office market continues to defy regional headwinds, according to Knight Frank’s Asia-Pacific Office Highlights Q3 2025 report. Leasing momentum remained strong, with 8.8 million sq ft transacted in Q3. Bengaluru, NCR and Mumbai are together expected to touch 50 million sq ft this year, surpassing the 2024 record of 41 million sq ft.

The surge is driven by Global Capability Centres (GCCs) and renewed demand from IT services firms, reinforcing India’s position as a global business hub. Despite nearly 9 million sq ft of new supply in the quarter, prime office rents across Bengaluru, NCR and Mumbai rose 4.3 per cent year-on-year, highlighting sustained occupier demand.

Bengaluru led with 8.8 per cent annual rental growth, followed by NCR at 3 per cent and Mumbai at 3.9 per cent. Vacancy remained steady at 11.5 per cent in Bengaluru, 12.5 per cent in NCR and 17.3 per cent in Mumbai.

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.”

Regionally, Asia-Pacific prime rents fell 1.4 per cent year-on-year, with declines in Chinese mainland markets offsetting gains in India and Australia. Nearly half of the region’s major leases came from the technology and financial services sectors, underscoring continued flight to quality.

Knight Frank expects India’s office market to sustain steady rental growth through 2026, supported by robust economic fundamentals, government digital initiatives, and GCC expansion across Tier-I and emerging Tier-II cities.

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