Mumbai, July 17 India’s three largest office markets — Bengaluru, Delhi-NCR and Mumbai — delivered a robust performance in the Asia-Pacific region in second quarter of 2025 (Q2 2025), registering the highest second-quarter leasing volume on record, a report said on Thursday.
The three cities together leased 12.7 million square feet in Q2, up 20 per cent year-on-year (YoY), according to Knight Frank’s ‘Asia-Pacific Q2 2025 Office Highlights’ report.
Robust leasing activity translated to an acceleration in prime office rents, which rose 4.5 per cent YoY on average for the three markets.
Bengaluru remained the top-performing city, driven by Global Capability Centres (GCCs), while Delhi-NCR and Mumbai continued their upward trajectory in both leasing activity and rental value, as per the report.
Delhi-NCR and Mumbai ranked 6th and 7th, respectively, in the Asia-Pacific Prime Office Rental Index.
“India’s office market continues to display a remarkable growth trajectory. The record second-quarter leasing across our top cities highlights the strategic role India now plays in global real estate portfolios,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
Delhi-NCR set a new benchmark in H1 2025, with total office space leased reaching 7.2 million square feet, the highest-ever recorded for the city.
“Prime rents rose 0.9 per cent YoY to Rs 343 per sq ft per month. The vacancy rate stood at 12 per cent, and rental values remained steady during the quarter,” the report stated.
Meanwhile, Mumbai recorded a 7 per cent YoY rise in prime rents, reaching Rs 323 per sq ft per month, the second highest in India.
At the same time, the vacancy rate stood at 17.4 per cent, down from 19.7 per cent last year. Bengaluru remained India’s most active office market, with 18.2 million square feet leased in the first half of 2025, already surpassing 2024’s full-year volume.
Although the leasing momentum in Q2 2025 was strongest in India, there were also indications of stabilisation in the larger Asia Pacific office market. For the first time in almost three years, regional prime rents increased by 0.2 per cent on a quarter-over-quarter (QoQ) basis, said the report.
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