Fri, 30 Oct, 2026, 02:26 pm
Reported by mint
Bengaluru, India's 'Startup City', is keeping pace with Tokyo in prime office rental growth, while Mumbai's commercial property market is witnessing a sharp revival in leasing activity, highlighting contrasting trends across the country's major business hubs.
According to Knight Frank's latest Asia-Pacific Research: Office Markets – Q3 2026 report, Bengaluru recorded an 11.5% year-on-year (YoY) increase in prime office rents during the July-September quarter, matching Tokyo's growth rate. Bengaluru ranked fourth among 24 Asia-Pacific markets, while Tokyo took the third position.
Mumbai, meanwhile, recorded a 33% YoY increase in office leasing transactions in Q3 2026. The city's year-to-date (YTD) leasing volumes have already surpassed its full-year total for 2025, with India-focused occupiers accounting for more than half of the quarterly leasing activity.
Bengaluru matches Tokyo in office rental growthBengaluru's prime office rents increased 2.8% quarter-on-quarter (QoQ) to ₹2,015 per sq ft per annum in Q3 2026. The city continued to benefit from demand from global capability centres (GCCs), which accounted for nearly 50% of its office leasing demand.
Despite a significant increase in new office completions, vacancy levels remained relatively stable at 13.4%, indicating that occupier demand continued to absorb additional supply.
