Commercial Rentals Surge in Indian Cities Despite Global Uncertainty
Commercial real estate rentals in India's top cities have witnessed a significant rise from 2022 to 2025, driven by strong demand from US firms and GCCs, despite global economic challenges.
Commercial Real EstateOffice Space LeasingReal Estate RentalsGlobal Capability CentresHybrid Work ModelReal Estate NewsMay 23, 2025
Of the top six Indian cities, the rentals in the Mumbai Metropolitan Region (MMR) grew by 28 per cent between 2022 and 2025, to Rs 168 per square foot per month. Meanwhile, the rentals in Hyderabad increased by 24.1 per cent to Rs 72 per sq ft per month.
Notably, the US, which is seeing considerable business policy uncertainty, accounts for 45 per cent of total office space leasing in India, ahead of all other countries. In Mumbai, US-based banks contribute as much as 48 per cent of BFSI leasing. American companies’ appetite for prime Indian grade A office spaces remains undiminished, according to Peush Jain, managing director – commercial leasing and advisory, Anarock Group.
During the same period, the rentals in Delhi NCR rose by 20 per cent to Rs 110 per sq ft per month. The rentals in Bengaluru grew by 15.8 per cent to Rs 95 per sq ft per month, while those in Pune grew by 11.1 per cent to Rs 80 per sq ft per month. The rentals in Chennai increased by 9.1 per cent to Rs 72 per sq ft per month.
The growth is amid businesses’ push for a full-fledged return to office life and a growing demand for premium workspaces, especially in hotspots like MMR, Delhi NCR, and Hyderabad. Global capability centres (GCCs) have become the single biggest transformation driver on India’s office leasing landscape. In Q1 2025 alone, GCCs leased 8.35 million sq ft of office space, with Delhi NCR capturing close to 23 per cent of that demand. Over the past two years, the GCCs have accounted for over 37 per cent of all office leasing across the top seven cities.
The report further noted that investor sentiment in the commercial space remains optimistic despite global headwinds. With real estate investment trusts (REITs) gaining traction and office absorption back to pre-pandemic levels, investor sentiment in the commercial space remains optimistic despite global headwinds.
The future of work in India is not remote but reimagined. The hybrid work model has matured – not as a shift away from offices, but as a strategic blend of physical and flexible spaces. This evolution has ensured a strong leasing pipeline, particularly in tech parks, co-working hubs, and special economic zones, Jain added.
Frequently Asked Questions
What is the percentage increase in commercial rentals in Mumbai Metropolitan Region (MMR) from 2022 to 2025?
The commercial rentals in the Mumbai Metropolitan Region (MMR) grew by 28 per cent from 2022 to 2025.
Which country accounts for the highest percentage of total office space leasing in India?
The US accounts for 45 per cent of total office space leasing in India, ahead of all other countries.
What is the growth rate of commercial rentals in Hyderabad from 2022 to 2025?
The commercial rentals in Hyderabad increased by 24.1 per cent from 2022 to 2025.
What role do global capability centres (GCCs) play in India's office leasing landscape?
Global capability centres (GCCs) have become the single biggest transformation driver on India’s office leasing landscape, leasing 8.35 million sq ft of office space in Q1 2025 alone.
How has the hybrid work model impacted the commercial real estate market in India?
The hybrid work model has matured as a strategic blend of physical and flexible spaces, ensuring a strong leasing pipeline, particularly in tech parks, co-working hubs, and special economic zones.
Tags:
Related News Articles
Wealthy Indians Rush to Secure Greek Residency Through Real Estate Ahead of Golden Visa Changes
Indian investors are drawn to Greece for its attractive real estate prices, rental income opportunities, and access to the EU market. Before the changes to the Golden Visa Programme, Indians could secure residency with a €250,000 investment.
REA Group Abandons Takeover Bid for Britain's Rightmove
Australian property listing firm REA Group has ended its pursuit of Britain's Rightmove, a leading real estate portal, after facing multiple rejections.
AP CM N Chandrababu Naidu Pledges Full Support to Real Estate Sector
Andhra Pradesh Chief Minister N Chandrababu Naidu has assured full support to the real estate sector, predicting significant growth in the coming years. He emphasized the importance of proper permissions and sustainable development.
MahaRERA Limits SRO Tenure to Two Years to Prevent Conflict of Interest
Mumbai, 13th January 2025: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has decided to limit the tenure of appointees in various positions to two years to prevent any potential conflict of interest and ensure transparency and accountability
The Indian Diaspora: Remittances, Costs, and Future Trends
Indian emigrants come from various regions and mainly follow Hinduism, although regional migration patterns vary, leading to a significant presence of Tamils in certain areas. This article explores the impact of remittances, associated costs, and future t
Rexas Finance: The Crypto Project Revolutionizing Real-World Asset Tokenization
Elon's Grok AI has highlighted Rexas Finance (RXS) as a groundbreaking project in the crypto market. With a focus on real-world asset tokenization and a successful presale, RXS is poised to redefine the way we invest in physical assets. Invest now to secu