Mumbai: India has emerged as the top performer in the Asia-Pacific office market, according to Knight Frank’s Asia-Pacific Q2 2025 Office Highlights report.
The country’s three major commercial hubs – Bengaluru, Delhi-NCR, and Mumbai – recorded the highest-ever second-quarter leasing volume of 12.7 million sq ft, marking a 20% year-on-year increase, as per the Asia-Pacific Q2 2025 Office Highlights report.
The surge in leasing activity contributed to a 4.5% average year-on-year increase in prime office rents across the three cities, underlining India’s growing influence in global corporate real estate portfolios.
Also Read: Pune Office Market Logs Highest H1 Leasing in Over a Decade: Knight Frank
Bengaluru led the charge, driven by robust demand from Global Capability Centres (GCCs), while Delhi-NCR and Mumbai continued their upward trajectory and secured 6th and 7th positions, respectively, in the APAC Prime Office Rental Index.
Asia-Pacific Q2 2025 Office Highlights: India Market
- Bengaluru leased 18.2 mn sq ft in H1 2025 – surpassing its 2024 full-year total. Prime rents rose 7.9% YoY, and vacancy dropped to 10.5%.
- Delhi-NCR achieved record leasing of 7.2 mn sq ft in H1 2025. Prime rents increased 0.9% YoY to ₹343 per sq ft/month, with a vacancy rate of 12%.
- Mumbai recorded a 7% YoY rental rise to ₹323 per sq ft/month in Q2 2025. Leasing demand remained strong in core micro-markets like BKC and Lower Parel, and vacancy dropped to 17.4%.
Across the broader Asia-Pacific region, prime office rents rose 0.2% quarter-on-quarter—the first increase in nearly three years.
While leasing slowed in Chinese Tier-1 cities, markets like Brisbane and Tokyo recorded rental gains, and Hong Kong saw a deepening pricing opportunity with a 34% decline in rents since 2019.
Also Read: Bengaluru and Pune Lead 40 Per Cent YoY Surge in Net Office Leasing in H1 2025
Shishir Baijal, Chairman & Managing Director of Knight Frank India, noted, “The record second-quarter leasing across India’s top cities reaffirms our strategic position in global real estate. Demand from GCCs and IT service providers is structurally transforming India’s office market, making it a preferred long-term investment destination.”
The Asia-Pacific Q2 2025 Office Highlights report also highlighted shifting tenant priorities amid global volatility, with occupiers seeking functionality, flexibility, and resilient infrastructure.
