Bengaluru and Delhi-NCR Office Rents Surpass ₹100/sq ft Amid Rising Demand
Office rents cross ₹100/sq ft a month in B'luru, NCR amid demand-supply gap
Business Standard
Image: Business Standard
For the first time, average monthly office rents in Bengaluru and Delhi-NCR have crossed ₹100 per square foot, driven by a significant demand-supply gap. The overall office rental market in India saw a growth of 2-15% in early 2026, with Delhi-NCR experiencing the highest increase at 15%.
- 01Bengaluru and Delhi-NCR office rents exceeded ₹100 per sq ft for the first time.
- 02Overall office rentals in India rose by 2-15% in Q1 2026 compared to the previous year.
- 03Delhi-NCR saw the highest rental growth at 15%, reaching ₹105 per sq ft.
- 04Leasing activity hit a record 29.9 million square feet in early 2026.
- 05Vacancy rates decreased from 17.2% in 2021 to 13.9% in Q1 2026.
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Average monthly office rents in Bengaluru and Delhi-NCR have surpassed ₹100 per square foot for the first time, as reported by real estate consultant Knight Frank. The overall office rental market in India experienced a growth of 2-15% during the first quarter of 2026, with Delhi-NCR witnessing the highest increase of 15% to ₹105 per sq ft. In Bengaluru, rents rose 7% to ₹100.6 per sq ft. The demand for office space remains strong, with leasing activity reaching a record 29.9 million square feet, a 6% increase from the previous year. However, the supply has not kept pace, with only 14 million square feet delivered during the same period, resulting in a vacancy rate decline from 17.2% in 2021 to 13.9% in early 2026. This persistent gap between supply and demand has tightened market conditions, as developers focus more on residential projects.
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The rising office rents could lead to increased operational costs for businesses, potentially affecting hiring and expansion plans. Companies may need to reassess their office space needs and budget accordingly.
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