Bengaluru: Bengaluru continued to strengthen its position as one of India’s leading office markets, recording the country’s strongest prime office rental growth in the second quarter of 2026, according to Knight Frank’s Asia-Pacific Office Highlights – Q2 2026.
Bengaluru, Mumbai and Delhi-NCR collectively leased 9.8 million sq ft of office space during the quarter. Although leasing moderated from the exceptionally high levels seen in 2025, demand remained firm despite more than 7 million sq ft of new office completions.
Bengaluru records strongest rental growth
Prime office rents in Bengaluru rose 10.7 per cent year-on-year to Rs 163 per sq ft per month in Q2 2026, compared with Rs 148 per sq ft per month a year earlier.
Delhi-NCR recorded a 7.6 per cent annual increase to Rs 369 per sq ft per month, while Mumbai saw rents rise 4 per cent to Rs 335 per sq ft per month.
Knight Frank said stable vacancy levels across the major markets indicated that fresh supply was being absorbed effectively.
Flexible workspaces gain ground
Flexible workspace operators accounted for more than 30 per cent of leasing volumes across Bengaluru, Delhi-NCR and Mumbai, overtaking financial services as one of the largest occupier groups.
The consultancy said the trend reflected a broader shift in workplace strategies, with companies seeking greater flexibility and agility in managing office portfolios.
GCCs keep demand strong
Global Capability Centres (GCCs) continued to be a key driver of office demand across India’s major markets. Bengaluru’s technology and innovation ecosystem is also supporting demand for premium office space.
Knight Frank expects the flight-to-quality trend to remain important, with sustainable buildings, modern amenities and flexible workplace solutions likely to attract stronger occupier interest.
The consultancy said India’s strong talent pool and strategic role in global corporate operations would continue supporting the country’s office market despite evolving geopolitical and workplace trends.