India's Top Cities Witness 18% Growth in Office Space Rents Over Three Years
India's top six cities have seen an average rental growth of 18.35% for office spaces between 2022 and 2025, with Mumbai leading the surge.
Office Space RentMumbaiHyderabadDelhincrBengaluruReal EstateMay 24, 2025
Mumbai Metropolitan Region (MMR) office rental values have surged by 28% from ₹131 per sq ft in 2022 to ₹168 in 2025, outpacing other top metro markets. Hyderabad emerged as the second-fastest growing rental market, boosted by a strong IT corridor, cost competitiveness, and investor-friendly policies.
The post-pandemic revival, supported by a sustained return-to-office movement and strong demand from Global Capability Centres (GCCs), tech firms, and BFSI players, has fueled robust growth in rental values across key business hubs.
Notably, the US, which is seeing considerable business policy uncertainty, accounts for 45% of total office space leasing in India – ahead of all other countries, according to Peush Jain, MD - Commercial Leasing & Advisory, Anarock Group.
“GCCs have become the single-biggest transformation driver on India’s office leasing landscape. Our data shows that in Q1 2025 alone, GCCs leased a staggering 8.35 million sq ft, with Delhi-NCR capturing close to 23% of that demand. Over the past two years, they have accounted for over 37% of all office leasing across the top seven cities,” said Jain.
Rental growth across six cities (2022–2025)
MMR: Office rental values in the Mumbai Metropolitan Region rose 28%, from ₹131 to ₹168 per sq ft, making it the most expensive commercial market in India.
Hyderabad: Rentals surged by 24.1%, climbing from ₹59 to ₹72 per sq ft, driven by a booming IT corridor and pro-investor policies.
Delhi NCR: The region saw a 20% increase in rentals, from ₹92 to ₹110 per sq ft, supported by infrastructure growth in Noida and Gurugram.
Bengaluru: Office rents grew 15.8%, with values rising from ₹101 to ₹117 per sq ft, fuelled by consistent tech sector demand.
Pune: Rentals rose 11.1%, from ₹81 to ₹90 per sq ft, reflecting steady demand in IT and industrial zones.
Chennai: The city registered a more measured 9.1% growth, with rentals moving from ₹77 to ₹84 per sq ft, indicating stable absorption in key business districts.
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 SEZs, according to Peush Jain, Anarock Group.
The consistent rise in rentals, particularly in cities with controlled capital value growth like Hyderabad and Delhi NCR, has led to improved rental yields. With REITs gaining investor traction and absorption levels surpassing pre-COVID benchmarks, investor sentiment remains bullish.
Frequently Asked Questions
Which city has seen the highest growth in office space rents?
Mumbai Metropolitan Region (MMR) has seen the highest growth in office space rents, with a surge of 28% from ₹131 per sq ft in 2022 to ₹168 in 2025.
What factors have driven the growth in office space rentals?
The growth in office space rentals is driven by the post-pandemic revival, a sustained return-to-office movement, and strong demand from Global Capability Centres (GCCs), tech firms, and BFSI players.
What is the significance of the US in India's office space leasing market?
The US accounts for 45% of total office space leasing in India, ahead of all other countries, and is a significant driver of demand.
How has the hybrid work model impacted office space leasing?
The hybrid work model has matured into a strategic blend of physical and flexible spaces, ensuring a strong leasing pipeline, particularly in tech parks, co-working hubs, and SEZs.
What is the current investor sentiment in the Indian office space market?
Investor sentiment remains bullish, with REITs gaining traction and absorption levels surpassing pre-COVID benchmarks.
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