Bangalore Leads Asia in Office Rent Surge with 14% Growth, See Where Delhi and Mumbai Rank

Bengaluru led Asia-Pacific office rent growth with a 14% rise in Q1 2026, driven by GCC demand. Mumbai and Delhi-NCR also saw strong growth, while India’s top metros continue to attract global leasing activity.

Office Rent Hikes

Knight Frank just dropped its 'Asia Pacific Research, Office Markets - Q1 2026' report. It says Bengaluru saw the biggest rent hike for prime offices in the entire Asia-Pacific region. Rents shot up by 14% compared to last year, showing India's strong position. Mumbai (7.5%) and Delhi-NCR (8.2%) also saw solid growth. Across 24 major Asia-Pacific cities, 18 saw rents go up, with a regional average increase of 0.8% despite Middle East tensions.

Where does Mumbai stand?

The report says India and Australia are the main drivers of this growth. Hong Kong SAR is still the most expensive office market in Asia-Pacific, at USD 158.96 per sq ft per year. 

In India, Delhi-NCR is the costliest at USD 72.33, making it the 6th priciest in the region. 

Mumbai follows at 8th place (USD 68.51), and Bengaluru is at 19th (USD 36.84). Together, these three cities leased a massive 1.88 crore sq ft of office space this quarter, 3% more than the same period in 2025. 

Mumbai alone set a new record by leasing 56 lakh sq ft in a single quarter.

Bengaluru's 14% Rent Growth

Companies are mostly looking for prime office buildings. The expansion of Global Capability Centres (GCCs) and the rise of flexible workspaces are fuelling this trend. Bengaluru saw a massive 14% rent growth, the highest in Asia. In fact, GCCs accounted for 41% of all office space leased in the city. With vacancy at just 11.8%, rents are likely to climb even higher.

Where is Chennai?

Mumbai recorded a massive 56 lakh sq ft of leasing and a 7.5% rent growth. With a 16.2% vacancy rate, rents are expected to rise from the current Rs 4,025 per sq ft annually. 

Delhi-NCR's rent growth is steady at 8.2% year-on-year. With 14.2% vacancy, rents are expected to remain stable at around Rs 4,428 per sq ft. This report only covers 'prime' or 'A-grade' office spaces that attract global investment. That's why it focuses on India's top three metros. 

Chennai's office rent and transaction values are a bit lower, so it didn't make it to the top 24 list for Asia.