October 24, 2025: India’s office infrastructure market has emerged as a standout performer in the Asia-Pacific (APAC) region, maintaining positive rental growth in Q3 2025 despite a regional slowdown, according to Knight Frank’s latest Office Highlights report.
The study found that while prime office rents across the APAC region fell by 1.4% year-on-year, India’s key cities—Bengaluru, Delhi-NCR, and Mumbai—registered an average quarterly rental increase of 1.7%. The robust performance was backed by 8.8 million square feet of leasing during the quarter, with full-year activity expected to reach nearly 50 million square feet, surpassing the 2024 record of 41 million square feet. Growth was led by continued commitments from Global Capability Centres (GCCs) and renewed traction in third-party IT services.
In contrast, China’s office markets continued to face challenges. The Chinese mainland recorded a sharper 3.4% quarter-on-quarter decline in rents, compared to 2.9% in the previous quarter. Landlords were seen reducing rents to boost occupancy, amid a 1.8 million sq metre supply influx. Shenzhen posted the highest vacancy rate at 26.1%, followed by Shanghai (23.3%), Beijing (17.8%), and Guangzhou (17.5%).
Australia was among the stronger APAC markets, with prime office rents rising 5.5% year-on-year. Brisbane led with a 14.9% surge, driven by demand from professional services firms, while Melbourne recorded 5.3% quarterly growth.
Tim Armstrong, Global Head of Occupier Strategy and Solutions at Knight Frank, noted, “Corporates are committing to new spaces with a clear emphasis on agility, embedding flexible lease terms and pre-let options to mitigate risk.”
Christine Li, Head of Research, Asia-Pacific, added, “Technology is accelerating evolving expectations, while clustering of strategic functions in key districts is reinforcing the divide between best-in-class assets and the rest.”
Knight Frank expects premium office demand to stay resilient through 2026 despite new supply pressures.
Source: Construction Week
