Bengaluru Office Rents Match Tokyo with 11.5% Growth in Q3 2026

Bengaluru matched Japanese megacity Tokyo with an 11.5 per cent year-on-year (YoY) increase in prime office rents during the third quarter of 2026, according to the Asia-Pacific Research, Office Markets – Q3 2026 report by real estate consultancy Knight Frank. This places Bengaluru among the top 10 markets for office rental growth. Delhi-NCR and Mumbai also recorded significant YoY rental gains, with 5.4 per cent and 4 per cent respectively, while prime office rents across the broader Asia-Pacific (APAC) region increased by 1 per cent quarter-on-quarter (QoQ).

The report, which tracked 24 markets across APAC including Bengaluru, Delhi-NCR, and Mumbai, highlighted distinct market dynamics. Shishir Baijal, International Partner, Chairman and Managing Director at Knight Frank India, noted that "Rental growth across India’s key office markets reflects the continuing premium placed on quality and location." He added that Bengaluru’s stronger growth underscores the "value of well-positioned office assets," contrasting with Mumbai and Delhi-NCR, which show "distinct dynamics of more mature business markets."

Specific prime rental rates indicate Delhi-NCR at ₹4,428 per sq ft per annum, Mumbai at ₹4,111, and Bengaluru at ₹2,015. Office vacancy rates stood at 14.5 per cent in Delhi-NCR, 15.2 per cent in Mumbai, and 13.4 per cent in Bengaluru. In terms of occupancy costs, Delhi-NCR was the highest-ranked Indian market at seventh place with $73.11 (₹6,965) per sq ft per annum, followed by Mumbai at eighth place with $68.39 (₹6,514). Bengaluru, with occupancy costs of $37.16 (₹3,539) per sq ft per annum, emerged as one of the more affordable office markets in the region.

Despite these rental increases, office leasing across the Indian markets tracked declined 13.6 per cent YoY, totalling 7.6 million sq ft, even as prime rents rose by an average of 7.5 per cent. The demand driving these rents was primarily from global capability centres (GCCs), flexible workspace operators, and domestic occupiers, which helped offset weaker activity from third-party IT services firms. For an ordinary saver or taxpayer, rising office rents in major cities like Bengaluru can signal robust economic activity and potential job creation, indirectly benefiting local economies.

What to watch: Future trends in office leasing and rental growth across Indian metros.

Editor's note: The draft comprehensively covers the Knight Frank report findings, including growth stats, rental rates, and vacancy percentages.