If there is one office market in Asia-Pacific that is moving against the tide, it is India. Recent reports suggest that India’s office market is growing steadily and is expected to outperform many other Asia-Pacific markets in the coming year. Experts believe India could see the strongest office rental growth in the region in 2026.
In simple terms, more companies are leasing office space across Indian cities and rents for good quality offices are moving up. This shows growing confidence among businesses about operating and expanding in India. While several global office markets are still struggling with slow demand and empty buildings, India is clearly moving in a different direction.
Why India’s Office Market Is Standing Out
The Asia-Pacific region includes major economies such as China, Japan, Singapore and Australia. Many of these markets are still dealing with the after effects of weak demand, work from home trends and excess supply. Rental growth across these markets has remained muted, and in some cases, rents have even declined.
India, however, has shown consistent demand for office space. According to a recent report, prime office rents in India are expected to grow by around 7 to 10 percent in 2026. This is higher than most other markets in the region. The reason is simple. Companies are actually signing leases and occupying space, not just talking about future plans.
Strong Leasing Activity Across Major Cities
India’s main office hubs have driven this momentum. Bengaluru, Mumbai and Delhi NCR together leased close to 50 million square feet of office space in 2025. That is a sharp rise from the year before and one of the strongest leasing years these markets have seen in a while.
Bengaluru stood out the most. Rents in the city rose by nearly 14 percent over the year, the highest among major Indian markets. Leasing activity also picked up strongly in the second half of 2025, pushing Bengaluru into the list of better performing office markets across the Asia-Pacific region.
Mumbai and Delhi NCR stayed active as well. Demand did not spike suddenly but it stayed consistent through the year. A wide range of companies were taking space, which helped. Banks and financial services firms were still leasing offices, and so were tech companies, global outsourcing players and flexible workspace operators. Because demand was coming from many directions, both markets remained fairly stable and busy for most of the year.
What Is Driving This Demand
Several factors are pushing India’s office market forward.
One of the biggest drivers is the growth of Global Capability Centres, or GCCs. More multinational companies are choosing India to run their technology, finance, analytics and support teams. Many of them are not just entering the market but expanding existing offices. These setups usually need large, well designed spaces, and companies are locking in long term leases rather than testing the waters.
Technology and outsourcing firms are also keeping demand steady. India continues to be a go to location for IT services and back office work. As teams get bigger, companies want offices that allow people to collaborate easily and still leave room to grow. Employee comfort is also becoming a bigger factor than it was earlier.
Another noticeable shift is toward better buildings. Businesses are clearly picking quality over just cost. Modern offices with reliable infrastructure, sustainable design, efficient layouts and good connectivity are getting preference. This is why newer, well located buildings are seeing stronger demand and better rents, while older stock is being left behind.
How India compares with the rest of Asia-Pacific
Across Asia-Pacific, a large volume of new office space is scheduled to be completed in 2026. Estimates point to more than 100 million square feet coming online across major cities. In markets where demand is already slow, this kind of supply can start to weigh on rentals.
India will also see new supply, roughly 43 million square feet in 2026. The difference is that Indian cities are better placed to absorb it. Demand remains healthy enough that new buildings are unlikely to lead to sharp vacancy spikes or rental pressure.
This balance is what really sets India apart right now. While several Asia-Pacific markets are dealing with too much space and not enough tenants, Indian cities continue to see genuine occupier interest. That steady demand is helping keep rental growth intact even as new offices enter the market.
What This Means for Businesses and Investors
For investors and developers, the outlook for India’s office market looks positive. Healthy rental growth, strong leasing activity and long term demand drivers make commercial offices an attractive asset class. For businesses, this trend highlights the importance of planning ahead. As demand rises, good quality office spaces in prime locations may become harder to secure and more expensive. Companies looking to expand or relocate should evaluate their space needs early, especially in fast growing markets like Bengaluru and Delhi NCR.
Overall, India’s office market is entering a phase of stable and demand led growth. Compared to many other Asia-Pacific markets, it stands out as one of the most promising destinations for office real estate in the coming years.