Knight Frank’s Asia-Pacific Outlook 2026 positions India as the region’s most resilient office real estate market. Strong leasing activity, expanding global capability centres, rising rentals in key cities, and growing demand for sustainable, high-quality workspaces are driving India’s leadership despite global economic uncertainty.
India has emerged as one of the most resilient and opportunity-rich office real estate markets in the Asia-Pacific region, according to Knight Frank’s Asia-Pacific Outlook 2026. While many regional markets continue to face pressure from global economic uncertainty, cautious capital flows, and slower growth, India is benefiting from strong domestic fundamentals and consistent occupier demand. The report highlights India’s ability to maintain momentum even as the broader Asia-Pacific economy is expected to slow in 2026 due to shifting trade policies and tighter investment sentiment.
Strong Office Market Outlook for 2026
Entering 2026, India holds one of the strongest office market outlooks in the region. Knight Frank attributes this performance to the steady expansion of global capability centres, ongoing hiring across the technology sector, and high levels of occupier confidence. These factors helped India record one of the highest office leasing volumes in Asia-Pacific during 2025. Demand has remained broad-based, with both multinational corporations and domestic enterprises continuing to commit to long-term office strategies.
Key Cities Drive Leasing Momentum
Bengaluru, Mumbai, and the National Capital Region remain the frontrunners of India’s office market growth. These cities continue to attract large occupiers due to their deep talent pools, infrastructure maturity, and strong business ecosystems. Office rentals across these markets are projected to rise annually by 7.5 percent to 9 percent through 2026, reflecting sustained demand and limited supply of premium-grade assets. In a major milestone, India’s Grade A office stock across the top eight cities crossed one billion square feet in 2025, underlining the scale and depth of the market.
India’s Long-Term Strategic Appeal
Industry leaders see India as a long-term growth destination for global occupiers. Shishir Baijal, Chairman and Managing Director of Knight Frank India, described the country as a compelling choice for businesses planning future expansion. “The aspect of India’s affordability, a vast pool of skill, stable regulations, and a growing workplace ecosystem all add to its comparative attraction with other global hubs,” he said. This combination continues to position India ahead of competing markets in the region.
Shift Toward Quality and Sustainability
The report also highlights a clear shift in occupier preferences. Landlords are investing heavily in upgrading older office buildings with better air-conditioning, improved natural light, modern workplace technology, and sustainability features. At the same time, tenants are increasingly willing to pay a premium for efficient, sustainable, and employee-friendly workspaces rather than simply opting for larger floor plates. This trend is reshaping office development, reinforcing the role of flexible, future-ready workplaces in India’s evolving real estate landscape.
