Commercial Rentals Surge in Major Indian Cities Despite Global Uncertainty
Commercial real estate rentals in India's top cities have witnessed significant growth from 2022 to 2025, driven by strong demand from US firms and GCCs, despite global macroeconomic challenges.
Commercial RentalsReal EstateIndian CitiesGlobal UncertaintyOffice LeasingReal Estate MumbaiMay 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, reaching 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 experiencing 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.
According to Jain, 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 growth rate of commercial rentals in the 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 contributes the most to office space leasing in India?
The US contributes the most to office space leasing in India, accounting for 45 per cent of total leasing.
How much did the rentals in Hyderabad increase from 2022 to 2025?
The rentals in Hyderabad increased by 24.1 per cent from 2022 to 2025, reaching Rs 72 per sq ft per month.
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.
What is the current investor sentiment in India’s commercial real estate market?
Investor sentiment in India’s commercial real estate market remains optimistic despite global headwinds, with real estate investment trusts (REITs) gaining traction and office absorption back to pre-pandemic levels.
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