If there is one office market in the Asia-Pacific that is moving against the tide, it is none other than ‘India’. Reportedly, India’s office market is expanding consistently and is expected to outperform many other Asia-Pacific markets in the upcoming year. Experts are even saying that India is going to see high office rental growth this year.
A lot of companies are leasing office spaces in Indian cities due to which rent of high quality office spaces is rising. This shows growing confidence among businesses about operating and expanding in India. It’s seen that while the rest of the global office market is struggling with weak demand and vacant properties, India is heading in a totally different direction.
Why India’s office market is standing out
The Asia-Pacific region includes China, Japan, Singapore and Australia.
Many of these markets are still facing the repercussions of weak demand, work from home trends and surplus supply. Rental growth in these markets is unchanged and in some areas the rents have actually fallen.
India on the other hand, is seeing consistent office demand. It’s being reported that office rents in prime areas are going to grow by around 7 to 9 percent this year. This is higher than most other markets in the region. It’s clear that companies are no longer talking about office spaces, they are actually leasing.
Strong leasing activity across major cities
The main office hubs in India are behind this momentum. Bengaluru, Mumbai and Delhi NCR together leased nearly 50 million square feet of office area in 2025. This is a sharp rise as compared to the previous year and one of the best leasing years the market has seen in a while.
Bengaluru was the prominent one. Rents in the city rose by almost 14 percent, the highest among major Indian markets. Leasing activity also increased in the second half of 2025 taking Bengaluru to the top performing list of Asia-Pacific office markets.
Mumbai and Delhi were also active. Demand did not surge but it remained steady throughout the year. A diverse range of offices were occupying office space which contributed immensely. Banks, financial companies, IT firms, international outsourcing companies, all were renting office spaces.
There were demands from all the directions because of which both markets were busy during the whole year.
What is driving this demand
Several factors are responsible for pulling India’s office market forward.
A major factor is the expansion of Global Capability Centres also known as GCCs. A large number of multinational companies are choosing India to operate their technology, finance, analytics and support teams.
India is a preferred location for IT services and back office work. As teams expand companies need offices that allow easy communication and also align with the growth goals of the organisation. Employee comfort is also being taken into consideration which was not the case earlier.
Another important change that is being observed are better building structures. Businesses are prioritising quality over cost. Modern offices with good infrastructure, suitable designs, efficient layouts and strong connectivity are preferred. This is the main reason why newer and well located office buildings are seeing stronger demand and good rents.
How India compares with the rest of the Asia-Pacific
In the Asia-Pacific region, a large number of new offices are set to be finished by the end of this year. Some reports also suggest that 100 million square feet of office spaces will be available in urban areas. This is going to affect the markets where demand is already slow.
India is also expecting to see new supply of nearly 43 million square feet this year. The difference is that India is more established to absorb this. The demand remains healthy which is why it is not going to spike vacancy and rental pressure.
In short, the balance is what really sets India apart from the rest right now.
