Bengaluru prime office rents up 11.5% in Q3, matching Tokyo's pace

Bengaluru's prime office rents rose 11.5% year on year in Q3 2026, the same annual growth rate as Tokyo, according to the Asia-Pacific office markets report that Knight Frank released on Friday, 30 October 2026. Prime rent in the city stood at ₹2,015 per sq ft per annum, up 2.8% from the previous quarter. Bengaluru ranked fourth among the 24 Asia-Pacific office markets the consultancy tracks.

The growth stands out across the region. Asia-Pacific prime office rents rose 1% quarter on quarter, and 16 of the 24 markets recorded stable or rising rents. In India, Mumbai's prime rent grew 4% year on year and Delhi-NCR's grew 5.4%.

Demand is led by GCCs

Bengaluru remained the country's largest office leasing market in Q3, accounting for 33.4% of total gross leasing. Global capability centres (GCCs) drove about 65% of leasing in the city in the quarter. Savills put GCCs at 53% of Bengaluru's year-to-date leasing. The Outer Ring Road accounted for 61% of the city's leasing so far in 2026.

Demand came mainly from GCCs, flexible workspace operators and domestic occupiers. Together they offset weaker activity from third-party IT services firms.

Supply also rose sharply. Bengaluru and Hyderabad together added more than 15.9 million sq ft of new office completions in Q3, nearly 80% of the total added across India in the quarter. Consultancies differ on what this did to vacancy. Knight Frank's report says vacancy stayed largely stable. JLL reported a marginal increase, which it attributed to large project completions in the quarter. Knight Frank puts Bengaluru's vacancy at 13.4%.

Cost and leasing figures

Bengaluru's occupancy cost is $37.16 (₹3,539) per sq ft per annum, which makes it one of the more affordable prime office markets in the region. Delhi-NCR is the most expensive of the three Indian markets in rupee terms, at about ₹6,965 per sq ft a year. Mumbai is at about ₹6,514. In dollar terms, Delhi-NCR ranked seventh-most expensive in Asia-Pacific at USD 73.11, and Mumbai at USD 68.39.

Leasing figures for Bengaluru vary by source. JLL puts Q3 leasing at 7.74 million sq ft, Savills at 5.3 million sq ft and Cushman & Wakefield at 5.2 million sq ft. These firms use different methods, and none of these is a Knight Frank figure. Across Bengaluru, Mumbai and Delhi-NCR combined, Knight Frank counted 7.6 million sq ft of leasing in Q3, down 13.6% year on year. Mumbai's leasing transactions rose 33%.

Knight Frank expects leasing across the three cities to stay broadly in line with the record levels of 2025. The report gives no date for this view. Shishir Baijal, Chairman and Managing Director of Knight Frank India, said, "Bengaluru's stronger growth highlights the value of well-positioned office assets, while Mumbai and Delhi-NCR reflect the distinct dynamics of more mature business markets."

One analysis of the data says owners of high-quality, modern office parks are better placed to command higher rents, which can support their margins. It also says ample available supply could limit further rapid rent increases. The figures cover office space only. They do not report any effect on residential prices.

The number to watch is Bengaluru's vacancy rate, at 13.4% in Q3. If vacancy rises as the new completions are absorbed, rent growth could slow. If GCC demand keeps pace with the new space, the 11.5% rise may hold.