While the broader Asia-Pacific region braces for moderated growth due to trade uncertainties and shifting policies, India’s office and logistics sectors are projected to lead with sustained momentum, flexibility, and qualitative consolidation.

India’s Office Market: Poised for Historic Peaks and Quality-Driven Demand

India’s office sector enters 2026 on a high note, building on a record-breaking 2025 where gross leasing volumes are expected to surpass 80 million square feet. Cities like Bengaluru, Mumbai, and the National Capital Region (NCR) remain frontrunners, with rental growth forecasted at 7.5–9% year-on-year—placing India among the top performers in the region.

A key milestone: India’s Grade A office stock across the top eight cities crossed 1 billion square feet in 2025. Occupiers are increasingly prioritizing flexibility—shorter leases, managed offices, and hybrid-ready spaces—amid global uncertainties. Landlords are responding with retrofitting investments in HVAC, sustainability, and employee well-being features.

Shishir Baijal, International Partner, Chairman & Managing Director, Knight Frank India, commented: “India continues to stand out as a strategic growth market. The country’s affordability, depth of talent, regulatory stability and a maturing workplace ecosystem enhance its appeal relative to other global hubs.”

In contrast to challenges in Greater China (elevated vacancies) and moderation in Singapore and Australia, India’s limited oversupply and strong GCC (Global Capability Centres) expansion ensure a healthy supply-demand balance.

Logistics & Industrial Sector: India Outperforms as the Regional Bright Spot

India’s logistics market remains the strongest in Asia-Pacific, defying flattening rents elsewhere. Sustained demand from manufacturing, e-commerce, and China+1 diversification strategies will drive around 5% rental growth in core hubs like Bengaluru, Mumbai, and NCR in 2026.

Government incentives, infrastructure upgrades, and a skilled workforce position India as a resilient supply chain hub. While China faces vacancy pressures and Australia normalizes post-upcycle, India’s consistent performance underscores its long-term appeal.

Why India Stands Apart Amid APAC Recalibration

The Asia-Pacific region heads into 2026 with a focus on precision over scale—emphasizing ESG compliance, flexibility, and performance. Tim Armstrong, Global Head of Occupier Strategy and Solutions, Knight Frank Asia-Pacific, noted: “In 2026, it won’t be about choosing between cost control and transformation — it will be about delivering both.”

India’s structural strengths—robust domestic consumption, policy stability, and cost competitiveness (rents often under USD 1/sq ft/month)—make it a consolidation hub for multinationals. As global volatility persists, India’s real estate offers clarity, scale, and opportunity in an uncertain world.

Also Read: Indian investors invested USD 335 Mn in Dubai’s Market in H1 2023 (Jan to June) – Vestian

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