Mumbai, October 30, 2026: Bengaluru recorded an 11.5% year-on-year increase in prime office rents in the third quarter of 2026, matching Tokyo’s growth rate and ranking fourth among Asia-Pacific markets, according to Knight Frank’s Asia-Pacific Research, Office Markets – Q3 2026 report. Delhi-NCR and Mumbai saw annual rental growth of 5.4% and 4.0%, respectively.
Across the Asia-Pacific region, prime office rents rose 1.0% quarter-on-quarter, with 16 out of 24 tracked markets reporting stable or rising rents. Hong Kong SAR led with 17.1% year-on-year growth, while Bengaluru posted a 2.8% quarter-on-quarter increase, continuing its positive momentum.
Occupancy costs across APAC cities
Delhi-NCR ranked seventh among the region’s most expensive prime office markets, with an occupancy cost of USD73.11 per sq ft per annum. Mumbai followed at USD68.39, while Bengaluru’s occupancy cost was significantly lower at USD37.16 per sq ft per annum, placing it among the more affordable markets. Hong Kong SAR remained the costliest at USD178.31, followed by Singapore at USD132.06 and Sydney at USD114.62 per sq ft per annum.
Leasing activity and vacancy rates
Office leasing across Bengaluru, Mumbai, and Delhi-NCR totalled 7.6 million sq ft in Q3 2026, down 13.6% year-on-year. Despite the decline in leasing activity, prime rents in these cities rose by an average of 7.5% annually. Demand was mainly driven by global capability centres, flexible workspace operators, and domestic occupiers, offsetting weaker activity from third-party IT services firms.
Mumbai saw a 33% year-on-year increase in leasing transactions, with year-to-date volumes surpassing the full-year total for 2025. In Bengaluru, global capability centres accounted for nearly half of leasing demand, while vacancy stood at 13.4%. Mumbai’s vacancy rate reached 15.2%, and Delhi-NCR’s was 14.5%. Prime rents in Bengaluru rose to INR 2,015 per sq ft per annum, in Mumbai to INR 4,111, and in Delhi-NCR to INR 4,428.
APAC office rental growth rankings
In the Asia-Pacific region, Bengaluru ranked fourth in annual prime office rental growth, tied with Tokyo at 11.5%. Delhi-NCR was eighth with 5.4% growth, and Mumbai ranked eleventh at 4.0%. Other leading cities included Hong Kong SAR (17.1%), Brisbane (12.1%), and Sydney (10.2%).
Industry perspectives
Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said that rental growth in India’s key office markets reflects the premium placed on quality and location, with Bengaluru’s performance highlighting the value of well-positioned assets. Tim Armstrong, Global Head of Occupier Strategy and Solutions at Knight Frank, noted that organisations are making major technology investments, leading to greater scrutiny of real estate portfolios and a focus on how workplace strategy and technology can jointly drive productivity and business growth.
Disclaimer: This article is based on a press release provided by the concerned organisation and has been edited for style and clarity with the assistance of AI tools. BusinessFortnight does not verify, endorse, or take responsibility for the claims, figures, or statements made in the original release.
