At a time when several Asia-Pacific markets are witnessing cautious corporate expansion, India’s office sector is charting a different course. Leasing activity has remained robust, rental trends are stable, and absorption levels continue to reflect confidence among occupiers.
According to Knight Frank, India’s three largest office markets — Bengaluru, Mumbai and Delhi-NCR, collectively recorded approximately 50 million sq. ft of leasing in 2025. This marked a 21% year-on-year increase and the highest annual absorption ever recorded across these markets.
The expansion is being driven largely by the steady rise of Global Capability Centres (GCCs), alongside sustained demand from technology, BFSI and consulting firms. Unlike short bursts of optimism seen in previous cycles, industry experts believe the current momentum is anchored in structural shifts within corporate strategy.
Multinational firms are not merely outsourcing support functions to India anymore. Increasingly, core business operations, research and development, analytics and leadership roles are being housed here. That shift has created long-term space requirements rather than temporary expansions.
At the same time, institutional investors continue to back Grade A office assets, reflecting confidence in the sector’s long-term fundamentals. Compared with several APAC hubs, India’s rental levels remain competitive, reinforcing its appeal as a scalable and cost-efficient corporate destination.
Delhi-NCR moves to the forefront
Within this broader national narrative, Delhi-NCR has emerged as a central contributor to growth.
Data from Cushman & Wakefield shows that Delhi-NCR recorded an all-time high office leasing of 15.8 million sq. ft in 2025, marking a 24% year-on-year increase. The surge places the region firmly among the strongest performers in the country.
Noida played a particularly significant role in this upswing, registering a 73% rise in annual leasing during 2025. The IT-BPM sector accounted for 37% of total demand, followed by professional services firms at 15% and engineering and manufacturing firms at 14%.
Rental trends have also strengthened. During Q4 2025, Delhi-NCR saw a 2–5% quarter-on-quarter increase in overall rentals. On a year-on-year basis, rents rose 6–8% across the region, with Gurugram’s CBD outperforming at 12–15% growth.
Industry stakeholders attribute this rise to improving infrastructure, corporate clustering and expanding occupier confidence. The expected opening of the Noida International Airport in the coming months has further strengthened sentiment across the region.
Gurugram’s evolution beyond address value
For years, Gurugram has been one of North India’s most prominent corporate hubs. Today, however, occupiers are evaluating more than just prestige or address value.
Harinder Singh Hora, Founder Chairman, Reach Group, notes that companies are increasingly focused on mobility, employee convenience and ecosystem depth. There has been a visible rise in pre-commitment activity for Grade A assets, suggesting that corporates are planning three to five years ahead rather than reacting to short-term cycles.
This forward-looking approach aligns expansion with long-term business growth. India’s talent base and cost competitiveness further reinforce Delhi-NCR’s standing within the larger APAC office landscape.
Sandeep Chhillar, Founder and Chairman, Landmark Group, points out that the nature of GCC expansion has evolved. Many global firms are now housing R&D, analytics and leadership teams in Gurugram rather than just back-office functions. That transition requires future-ready, ESG-compliant office environments with large, efficient floor plates.
This has triggered what industry observers call a “flight to quality”, where occupiers consolidate into superior assets instead of spreading across multiple buildings. The trend is reshaping absorption patterns and strengthening the case for premium developments in established business districts.
Noida emerges as the next growth lever
Alongside Gurugram, Noida is increasingly being viewed as the region’s next growth engine.
Compared with some established business districts, Noida continues to offer competitive rentals without compromising on Grade A quality. This combination has made it attractive for both large multinational occupiers and expanding mid-sized firms.
The Noida–Greater Noida Expressway has emerged as a key leasing corridor, supported by improving connectivity and infrastructure upgrades. The upcoming Noida International Airport is expected to further transform the area’s perception, positioning it as a strategic North India gateway rather than just an NCR micro-market.
Dr Amish Bhutani, Managing Director, Group 108, observes that the availability of large, contiguous floor plates at competitive rentals is drawing significant interest from GCCs and global enterprises seeking long-term expansion hubs. For international firms, scalability and infrastructure certainty are increasingly critical considerations.
With an expanding pipeline of new developments along the expressway belt, Noida appears well placed to capture the next phase of office demand.
Balancing demand with supply discipline
Even as demand remains strong, experts caution that sustained growth will depend on careful supply management.Viren Mehta, Founder and Director, ElitePro Infra, notes that while GCCs remain dominant demand drivers, BFSI, consulting firms and domestic corporates are also expanding. This diversification adds resilience to the NCR office market.
However, he cautions that if rental appreciation accelerates too sharply, mid-sized occupiers could explore peripheral markets. Maintaining equilibrium between genuine absorption and new supply will be critical in the coming quarters.
Ashwani Kumar of Pyramid Infratech highlights that Gurugram now operates with institutional-grade assets and multinational occupiers who view India as a long-term base. Structured expansion plans and multi-year leasing discussions are increasingly common, signalling stability rather than speculative growth.
India’s APAC edge in 2026
India’s projected leadership in the Asia-Pacific office market in 2026 will hinge on how effectively key markets manage this growth cycle. The structural expansion of GCCs, broad-based sectoral demand and competitive rental positioning provide strong foundations.
For Delhi-NCR, the opportunity is evident. Infrastructure upgrades, airport connectivity and corporate clustering are reinforcing its appeal. At the same time, maintaining supply discipline and ensuring that new launches align with genuine occupier demand will determine whether the region can consolidate its position as one of India’s most stable and scalable office markets.
In a global environment marked by caution, India’s office story stands out not for rapid speculation, but for steady, structural expansion. And within that narrative, Delhi-NCR is increasingly taking centre stage.
