Prime Office rents in Delhi-NCR, Mumbai and Bengaluru remain stable in Q3 2023: Knight Frank APAC Prime Office Rental Index

Prime Office rents in Delhi-NCR, Mumbai and Bengaluru remain stable in Q3 2023: Knight Frank APAC Prime Office Rental Index
  • Delhi-NCR, and Mumbai among top 10 markets across the APAC
  • Delhi-NCR 6th most expensive office market in APAC

Mumbai, 29th October, 2023: Knight Frank, in its latest edition of the Asia-Pacific Prime Office Rental Index for Q3 2023 noted that Delhi-NCR is the 6th most expensive office space rental market across the APAC region. Hong Kong SAR continued to be APAC’s most expensive office market during the quarter.

Demand for office space in India’s largest occupier markets remained strong with over 700,000 sqm of office space leases during the quarter. Strong occupiers demand for setting up Global Capability Centres (GCC) constituted most of the demand, which made up for slower demand from flex space operators. According to IT trade body Nasscom, India will have over 2,500 GCCs by the end of the decade, up from 1,580 now and a labour force that will more than double to 4.5 million.

Prime office rentals in Delhi-NCR, Mumbai, and Bengaluru remained strong in YoY terms while the rentals for the next 12 months are also expected to stay stable at current rates. On a quarter-on-quarter (QoQ) basis, the average rents across the region showed stability, with declines in the Chinese Mainland markets moderating. This was counter-balanced by rental growth in most other developed markets. Overall, the quarterly report indicated that in line with Q2 2023, 15 of the 23 tracked cities reported either stable or increasing rents, similar to Q3 2023.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “The Indian economy’s relative strength remains a magnet for global corporate interest, evident in the resurgence of demand in the Indian office space market. Transaction volumes have increased, and rental rates have stayed steady in the three major occupier markets. Landlords are concentrating on boosting occupancy levels. With the positive outlook in the office market and improved physical occupancy, the stability in occupancy and rental rates since 2022, coupled with the rising demand in 2023, reinforce our belief that the Indian office market’s resilience will persist in the short to medium term.”


MarketsCityAnnual Change (YoY %)Quarterly Change (QoQ %)Forecast next 12 months
East AsiaSeoul5.40%1.60%
East AsiaTaipei2.71%1.10%
East AsiaTokyo0.60%-0.40%
ASEANKuala Lumpur0.30%0.30%
ASEANPhnom Penh0.20%2.70%
ASEANHo Chi Minh City-0.10%-2.40%
East AsiaBeijing-3.50%-1.60%
East AsiaShanghai-4.20%-1.80%
East AsiaShenzhen-7.30%-1.10%
East AsiaHong Kong SAR-9.80%-1.20%
East AsiaGuangzhou-11.10%-2.70%

Source: Knight Frank Research


The prime office market of Delhi-NCR continues to see rental values maintain levels seen in the past four quarters. The prime office rent of the city was recorded at INR 340/sqft/month making it the 6th most expensive office market in the APAC region.


The prime office rent of the city was recorded at INR 302/sqft/month and was the 9th most expensive commercial market in the APAC region.


Bangalore stands 19th on the list and is one of the least expensive prime office markets in APAC region.  The prime office rent of the city was recorded at INR 135/sqft/month. The rental value in the city is projected to remain steady during the following 12 months.

Tim Armstrong, global head of occupier strategy and solutions, said, “Despite vacancies rising in the region, rental declines in the third quarter have stabilised, supported by a trend favouring flight-to-quality properties. Overall, the current expansionary cycle in the region affords occupiers a broader range of options and strategies to consider, enhancing their ability to secure favourable lease terms amid current soft conditions. While it is still premature to make a definitive judgement amidst the most recent political developments, the evolving geopolitical landscape is expected to cast a shadow on occupier prospects as companies meticulously evaluate the accompanying risks. As businesses adapt to a future hybrid work model, the trio of location, amenities, and sustainability have gained significance in rebalancing the scales in favour of in-person work.”

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About Knight Frank:

Knight Frank LLP is a leading independent, global property consultancy. Headquartered in London, Knight Frank has more than 20,000 people operating from over 487 offices across 53 markets. The Group advises clients ranging from individual owners and buyers to major developers, investors, and corporate tenants. For further information about the Company, please visit

Knight Frank India is headquartered in Mumbai and has more than 1,500 experts across Bangalore, Delhi, Pune, Hyderabad, Chennai, Kolkata and Ahmedabad. Backed by strong research and analytics, our experts offer a comprehensive range of real estate services across advisory, valuation and consulting, transactions (residential, commercial, retail, hospitality, land and capitals), facilities management and project management. For more information, visit

For further information, please contact:

Piyali Dasgupta (Knight Frank India) +91 9833571204 piyali.dasgupta@in.knightfrank.comTania Banerjee (Knight Frank India) +91 98190 04431 Tania.banerjee@in.knightfrank.comMansoor Khan (White Marque Solutions) +91 8108385015

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