India is poised to outpace the Asia-Pacific region in office real estate growth in 2026, underpinned by strong absorption, rental momentum, and the expansion of Global Capability Centres (GCCs). According to a recent industry report, India is expected to take up more than 43 million sq ft of new office completions next year, absorbing supply without materially softening prime rental rates, which are projected to rise between 7 and 10 per cent.
The country’s top three office markets Bengaluru, Mumbai, and Delhi-NCR recorded historic leasing in 2025, with total commitments reaching approximately 50 million sq ft, up 21 per cent year-on-year. Bengaluru led the pack, registering a 13.8 per cent annual increase in prime office rents and a 7.4 per cent quarter-on-quarter rise in Q4 2025, marking the city’s most active year in terms of leasing volume. Analysts attribute this surge to the city’s robust technology ecosystem, GCC expansions, and growing demand from IT outsourcing and flexible workspace operators. Mumbai and Delhi-NCR also displayed steady rental gains, with prime micro-markets attracting financial services firms, multinational corporates, and flex office operators seeking high-quality locations. Market observers note that sustained interest in institutional-grade office space is driven by companies consolidating operations into modern, future-ready workplaces that offer scalability, connectivity, and workplace efficiency.
While the Asia-Pacific region is set to see over 100 million sq ft of new office space in 2026 potentially increasing vacancy and tempering rental growth India’s fundamentals differ. Strong occupier demand, rising employment in technology and financial services, and early pre-commitments by GCCs and flex operators are expected to absorb new supply efficiently. Experts suggest that this resilience positions India as a regional outlier capable of maintaining upward rental momentum even amid significant additions to inventory. Urban planners and commercial real estate analysts highlight that India’s office market performance is increasingly influenced by the clustering of knowledge-based industries, infrastructure improvements, and a shift toward mixed-use developments. In Bengaluru, proximity to IT parks, global technology campuses, and efficient transport corridors continues to support rental growth and occupancy, while Mumbai and Delhi-NCR benefit from dense employment catchments and premium office nodes.
Looking ahead, 2026 is expected to see occupiers across sectors committing early to high-quality developments, with rental appreciation and absorption likely sustained across prime office districts. The outlook reinforces India’s growing position as a resilient and preferred hub for corporate and technology-driven office demand in Asia-Pacific, offering opportunities for investors and developers seeking long-term yield stability and portfolio diversification.
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