# Bengaluru Office Rents Match Tokyo as Mumbai Leasing Hits Record Highs Indian commercial real estate shows divergent growth patterns across major business hubs in 2026. - **Source:** [mint - industry](https://www.livemint.com/rss/industry) - **Published:** 2026-10-30 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/55cbed3c-02c9-4291-95b9-614eb58b9093 ## Divergent Market Trends India's commercial property landscape shows contrasting dynamics between its major hubs. While Bengaluru aligns with Tokyo’s rental growth trajectory, Mumbai experiences a sharp surge in leasing transactions. These shifts highlight how different business centers within the country are responding to evolving occupier demands and regional economic pressures during the third quarter. ## Bengaluru Rental Surge Bengaluru recorded an 11.5% year-on-year increase in prime office rents, matching Tokyo's performance. Rents reached 2,015 rupees per square foot annually, marking a 2.8% quarterly rise. Despite significant new office completions, vacancy levels remained stable at 13.4%, demonstrating that occupier demand continues to effectively absorb the incoming supply of space. ## Mumbai Leasing Records Mumbai’s commercial market witnessed a 33% annual increase in leasing transactions during the third quarter of 2026. Year-to-date leasing volumes have already surpassed the city's entire 2025 total. Prime office rents in the city grew by 4% year-on-year to 4,111 rupees per square foot, with vacancy rates currently standing at 15.2%. ## Role of GCCs Global Capability Centres remain the primary engine for office demand in Bengaluru, accounting for nearly 50% of total leasing activity. These entities continue to drive rental growth, helping the market maintain stability despite weaker performance from third-party IT services firms. Their presence underscores the city's ongoing status as a global technology hub. ## Domestic Occupier Influence India-focused occupiers contributed more than half of the quarterly leasing activity in Mumbai. This strong domestic demand, alongside flexible workspace operators, has been instrumental in offsetting slower activity from traditional IT service providers. The trend suggests a broader diversification of the tenant base within India's most expensive commercial real estate market. ## Delhi-NCR Market Performance Delhi-NCR recorded a 5.4% annual growth in prime office rents, with rates remaining unchanged sequentially at 4,428 rupees per square foot. The region currently holds a 14.5% vacancy rate. It ranks eighth among Asia-Pacific markets for rental growth and seventh in terms of prime office occupancy costs, valued at 73.11 dollars per foot. ## Regional APAC Context Across the broader Asia-Pacific region, Hong Kong SAR led with 17.1% annual rental growth, followed by Brisbane at 12.1%. Tokyo and Bengaluru tied for third place with 11.5% growth. These figures place Indian markets in a competitive position globally, reflecting sustained interest from international firms despite a 13.6% annual decline in total leasing. ## Future Market Outlook Total office leasing across Bengaluru, Mumbai, and Delhi-NCR reached 7.6 million square feet in the third quarter. While annual leasing volume saw a slight decline, prime rents increased by an average of 7.5%. Projections indicate that leasing activity across these three Indian markets will remain consistent with the record levels observed throughout 2025. ## Sources covering this story - https://www.livemint.com/industry/real-estate/startup-city-bengaluru-matches-tokyo-on-office-rents-as-maximum-city-mumbai-leasing-surpasses-2025-record-survey-11793369491410.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._