Prime office rents rise 4.3 per cent in Bengaluru, NCR and Mumbai

Prime office rents in Bengaluru, Delhi-NCR and Mumbai rose by an average 4.3 per cent year-on-year during July–September 2025, according to real estate consultancy Knight Frank.

The firm’s latest report said office leasing across the three cities is projected to reach 50 million sq ft in 2025, exceeding the previous record of 41 million sq ft in 2024.

Knight Frank attributed the surge to continued leasing by Global Capability Centres (GCCs) and renewed demand from third-party IT services, underscoring India’s position as a key business hub.

Bengaluru remained the strongest market with 2 per cent quarter-on-quarter growth and 8.8 per cent year-on-year increase in rents, driven by demand in areas such as Outer Ring Road and Whitefield. Delhi-NCR and Mumbai recorded 2 per cent quarterly gains and year-on-year increases of 3 per cent and 3.9 per cent, respectively.

Prime annual rents stood at Rs 1,807 per sq ft in Bengaluru’s central business district, Rs 3,953 in Mumbai’s Bandra Kurla Complex (BKC), and Rs 4,200 in Delhi’s Connaught Place.

“India’s office market continues to stand out as a beacon of stability and long-term potential amid regional uncertainty. The strong leasing activity highlights its growing importance in global business strategies,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

Real estate expert Sankey Prasad said the market is entering a renewed growth phase supported by robust leasing, GCC expansion, and increased institutional investment. “Occupiers are driving demand for high-quality, sustainable workspaces, while investors are drawn by stable yields and transparent market dynamics,” he said.

James Thomas, Co-Founder of SpazeOne, said the rising leasing volumes across India’s three largest office markets reflect “strong confidence and optimism driving India’s business landscape.”

The report also noted that average office rents in the Asia-Pacific region declined 1.4 per cent in Q3 2025, led by falling rents in mainland China.

(With inputs from agencies)