New Delhi, August 17: India’s leading office markets continued to witness strong demand in the second quarter of 2026, with prime office rents rising sharply across major cities, driven by sustained leasing activity, expansion by Global Capability Centres (GCCs) and demand for high-quality commercial spaces.
According to a Knight Frank report, Bengaluru, Mumbai and Delhi-NCR together recorded around 9.8 million sq ft of office leasing in Q2 2026. While leasing moderated from the exceptionally high levels seen in 2025, occupier demand remained robust despite more than 7 million sq ft of new office completions.
Bengaluru recorded the strongest rental growth among the major markets, with prime office rents increasing 10.7 per cent year-on-year. Delhi-NCR followed with a 7.6 per cent rise, while Mumbai recorded 4 per cent growth.
Prime office rents in Bengaluru reached around Rs 163 per sq ft per month during the quarter, compared with Rs 148 per sq ft per month a year earlier.
The strong rental momentum reflects continued demand for premium office space, particularly from GCCs, technology companies, financial services firms and flexible workspace operators.
GCCs remained a key driver of occupier activity across India’s major office markets. At the same time, flexible workspace operators accounted for more than 30 per cent of leasing volumes across Bengaluru, Delhi-NCR and Mumbai, highlighting the growing adoption of flexible workplace strategies by large organisations.
The broader office market also remained resilient. A separate Cushman & Wakefield report showed that gross leasing across India’s top eight office markets stood at about 21.4 million sq ft in Q2 2026, while net absorption was around 11.6 million sq ft. New Grade A completions stood at approximately 12.2 million sq ft.
The sustained demand comes despite global economic and geopolitical uncertainties, indicating that India’s office sector continues to benefit from structural factors such as the expansion of GCCs, India’s talent pool and increasing demand for high-quality workplaces.
With occupiers increasingly prioritising premium and future-ready office buildings, rental growth is expected to remain supported in key micro-markets, particularly where supply remains constrained and demand continues to outpace availability.
