Record leasing and rising demand from global capability centres are bolstering office owners, with Knowledge Realty Trust considering growth in Chennai, Gurugram and Pune.
India’s office market is showing renewed strength, with demand being led by global capability centres and front-office occupiers, according to Shirish Godbole, chief executive of Knowledge Realty Trust, the country’s largest listed real estate investment trust by market value. Godbole told Business Standard that the current environment is especially favourable for office owners because companies are continuing to expand their presence in India, even as many look to shift more work here from other markets.
He said tighter visa and immigration rules in countries such as the US, Australia and Canada could further support that trend, by making it harder for businesses to move staff abroad and encouraging more operations to be based in India instead. That, he argued, would be positive for the office sector and for Indian REITs more broadly. The Indian REITs Association, which he chairs, has also pointed to a rapidly expanding investor base, underlining how quickly the listed property market has matured.
Knowledge Realty Trust’s latest quarterly numbers appear to back up that optimism. The trust reported net operating income growth of 15 per cent year on year and revenue of ₹1,272.5 crore in the quarter, while distributions hit a record ₹764 crore. The Economic Times reported that leasing during the quarter reached 0.8 million square feet, taking first-half leasing to 2.2 million square feet. Occupancy stood at 93 per cent by area and 94 per cent by value, with management expecting a further rise over the next two quarters.
The broader market backdrop is also strong. Cushman & Wakefield said gross leasing across eight major Indian cities reached about 21.9 million square feet in the third quarter of 2026, with global capability centres accounting for 42 per cent of activity. JLL reported that office leasing in India hit a record 61.06 million square feet in the first nine months of 2026, while global capability centre leasing rose 30.6 per cent year on year. Against that backdrop, Knowledge Realty Trust is considering expansion in Chennai and Gurugram, while also weighing entry into Pune, as it looks to capture more of the demand that is reshaping India’s commercial property market.
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