Prime Office Rentals Rise Amid GCC Expansion in India

I ndia’s top office markets Bengaluru, Delhi-NCR, and Mumbai are witnessing robust growth, with prime office rents rising 4.3% year-on-year during the July–September 2025 quarter, according to real estate consultancy Knight Frank.

Office space leasing across these three cities is expected to reach 50 million sq ft in 2025, surpassing the previous record of 41 million sq ft in 2024, marking a 22% increase in leasing volumes. This growth is driven by sustained demand from Global Capability Centres (GCCs), a revival in third-party IT services, and increasing interest from institutional investors.

Among the cities, Bengaluru remains the most dynamic, with 8.8% YoY growth in prime office rents, up from 5–6% last year. High-demand corridors like Outer Ring Road and Whitefield are leading the surge. Delhi-NCR posted 3% YoY growth, while Mumbai’s BKC saw rents rise 3.9% YoY, reflecting steady leasing activity and investor confidence. Rental benchmarks indicate Bengaluru’s central business district at Rs 1,807/sq ft per year, Mumbai’s BKC at Rs 3,953, and Delhi’s Connaught Place at Rs 4,200 per sq ft per year.

Industry experts say the trends highlight India’s office market as a stable and attractive investment destination. Shishir Baijal, CMD of Knight Frank India, noted the market’s long-term potential, while analyst Sankey Prasad emphasized GCC expansion and sustainable workspace demand as key growth drivers. James Thomas, Co-Founder of SpazeOne, added that the rise in leasing volumes reflects strong confidence in India’s business landscape.

Compared to the Asia-Pacific region, where office rents fell 1.4% in Q3 2025, India stands out as a resilient hub, benefiting from multinational occupiers and robust domestic demand. With continued expansion in IT services and GCCs, the prime office market in India is expected to maintain steady growth, offering both occupiers and investors a stable and lucrative environment.