India's office market has just crossed a landmark threshold. For the first time, Bengaluru and Delhi-NCR have breached the ₹100 per sq ft mark in average monthly rentals for prime office spaces, according to real estate consultant Knight Frank. Mumbai had already crossed this mark earlier, but the crossing of this milestone by two more major cities signals just how strongly India's commercial real estate is performing.
What the Numbers Say
Bengaluru led with 14% rental growth, the highest in the entire Asia-Pacific region, driven by strong Global Capability Centre (GCC) leasing that accounted for 41% of total demand. Bengaluru's average transacted rent hit ₹100.6 per sq ft per month, the first time the city has crossed this level.
Delhi-NCR saw steady momentum with rents up 8.2% year-on-year and 3.7% quarter-on-quarter, with prime office rents now at ₹4,428 per sq ft per annum. Mumbai remained the standout performer, recording a peak leasing volume of 5.6 million sq ft and 7.5% rental growth in Q1 2026.
Demand Is Outpacing Supply
The demand for office leases reached a record 29.9 million sq ft in January–March 2026, yet office completions fell short as developers prioritised residential projects. This supply-demand mismatch is one of the key reasons rents are climbing, and the trend shows no sign of reversing soon.
What It Means for Investors
Rising office rents are a strong indicator of commercial real estate health, and they have a direct ripple effect on residential demand too. When corporates expand and lease more office space, the surrounding residential markets benefit from increased demand for quality housing from professionals and executives.
For Gurugram specifically, this is great news. With Cyber City, Golf Course Road, and the Southern Peripheral Road corridor continuing to attract top-tier occupiers, the outlook for both commercial and residential real estate in the city remains very strong.
