Bengaluru Matches Tokyo With 11.5% Office Rent Growth in Q3

What happened

Knight Frank's Asia-Pacific Research, Office Markets – Q3 2026 report was released on Friday, 30 October 2026. It shows Bengaluru's prime office rents at Rs 2,015 per sq ft per annum in Q3 2026, up 11.5% from a year earlier and 2.8% from the previous quarter. That annual growth matches Tokyo's rate, and places Bengaluru fourth among the 24 Asia-Pacific office markets the firm tracks.

Across Asia-Pacific, prime office rents rose 1% quarter on quarter, and 16 of the 24 markets recorded stable or rising rents.

Rents in the three big Indian office markets

Knight Frank's Q3 2026 prime rent figures for the three largest Indian office markets are shown below. Prime rents across the three rose an average 7.5% year on year.

Delhi-NCR was the seventh most expensive prime office market in Asia-Pacific, with an annual occupancy cost of USD 73.11 per sq ft (about Rs 6,965). Mumbai followed at USD 68.39 (about Rs 6,514). Bengaluru's occupancy cost of USD 37.16 (about Rs 3,539) makes it one of the more affordable office markets in the region.

Demand and leasing

Bengaluru remained India's largest office leasing market in Q3, accounting for 33.4% of total gross leasing. Global capability centres (GCCs), flexible workspace operators and domestic occupiers drove demand, offsetting weaker activity from third-party IT services firms. GCCs made up about 65% of leasing in Bengaluru in Q3.

Outer Ring Road accounted for 61% of the city's leasing in 2026 to date. Bengaluru and Hyderabad together accounted for nearly 80% of the new office space completed across India in Q3, with more than 15.9 million sq ft between them.

Across the three markets, combined leasing was 7.6 million sq ft in Q3, down 13.6% year on year, even as rents rose. Mumbai was an exception on volume, with leasing transactions up 33% year on year and nine-month 2026 volumes already above its full-year 2025 total.

Vacancy and differing figures

Reports on the same quarter differ on some points. Coverage of the Knight Frank data says Bengaluru's vacancy stayed largely stable despite a significant rise in new completions. JLL reports a marginal increase in vacancy, which it links to substantial project completions in the quarter.

JLL puts Q3 leasing at 7.74 million sq ft, Cushman & Wakefield at 5.2 million sq ft and Savills at 5.3 million sq ft. These firms use different methodologies, and none of these figures is a Knight Frank number.

What it means for buyers, investors and the market

The report measures office rents, not home prices. It does not show any direct effect on residential buyers in Bengaluru.

For investors in office assets, Knight Frank's Chairman and Managing Director, Shishir Baijal, said Bengaluru's stronger growth "highlights the value of well-positioned office assets." He added that rental growth across India's key office markets reflects the continuing premium placed on quality and location.

One analysis of the data says landlords are receiving higher rent per sq ft, but ample available supply could limit rapid further increases. It adds that owners of high-quality, modern office parks are better placed to command higher rents, which can support their operating margins.

What comes next

Knight Frank expects leasing across Bengaluru, Mumbai and Delhi-NCR to remain broadly in line with the record levels seen in 2025. The report gives no specific date for this. As of 31 October 2026, the main points to watch are vacancy trends as new completions are absorbed, and whether GCC demand continues to offset slower leasing from traditional IT firms.