MMR Office Rentals Surge 28%, Becoming India’s Costliest Market
The Mumbai Metropolitan Region (MMR) has witnessed a significant 28% increase in office rentals, solidifying its position as India’s most expensive commercial real estate market. Hyderabad and Delhi NCR follow closely with strong growth.
Office RentalsMmrReal EstateDelhi NcrHyderabadReal Estate NewsMay 23, 2025
Prime micro-markets within the MMR, such as Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East, continue to be highly sought after, particularly by sectors like finance, IT/ITeS, and startups. This significant rise is attributed to the post-pandemic rebound and sustained demand for premium office spaces in top hotspots like MMR, Delhi NCR, Hyderabad, and Bengaluru.
Delhi NCR registered a strong rise of 20 percent from Rs 92 to Rs 110 per sq. ft. during the same period. The uptick in rentals was driven primarily by infrastructure projects and rising office space demand in Noida and Gurugram. Hyderabad saw the second-highest growth with 24.1 percent, from Rs 59 per sq. ft. in 2022 to Rs 72 per sq. ft. in 2025. The tech capital, Bengaluru, saw a 15.8 percent increase in office rentals from Rs 82 per sq. ft. in 2022 to Rs 95 per sq. ft. in 2025. Areas like Whitefield, Outer Ring Road, and Electronic City continue to attract global occupiers in Bengaluru.
Similarly, Pune and Chennai showed only moderate rental growth of 11.1% and 9.1% respectively, mirroring the steady but controlled growth in their IT/ITES and industrial sectors. Peush Jain, MD - Commercial Leasing and Advisory, ANAROCK Group, said that the US, which is seeing considerable business policy uncertainty, accounts for 45 percent of total office space leasing in India, ahead of all other countries.
In Mumbai, US-based banks contribute as much as 48 percent of BFSI leasing. American companies’ appetite for prime Indian Grade A office spaces remains undiminished. Jain further said that GCCs have become the single-biggest transformation driver on India’s office leasing landscape. Our data shows that in Q1 2025 alone, GCCs leased 8.35 million sq. ft., with Delhi NCR capturing close to 23 percent of that demand. Over the past two years, they have accounted for over 37 percent of all office leasing across the top 7 cities, signaling a long-term commitment to the country’s metropolitan business ecosystems.
Frequently Asked Questions
What is the growth rate of office rentals in MMR?
The average rental values in the Mumbai Metropolitan Region (MMR) have seen an appreciation of 28 percent, from Rs 131 per sq. ft. in 2022 to Rs 168 per sq. ft. in 2025.
Which sectors are driving the demand for office spaces in MMR?
Sectors like finance, IT/ITeS, and startups are driving the demand for office spaces in prime micro-markets within the MMR, such as Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East.
How much has office rental growth been in Hyderabad?
Hyderabad saw the second-highest growth with 24.1 percent, from Rs 59 per sq. ft. in 2022 to Rs 72 per sq. ft. in 2025.
What is the role of US-based companies in India's office leasing market?
The US accounts for 45 percent of total office space leasing in India, with US-based banks contributing 48 percent of BFSI leasing in Mumbai. American companies have a strong appetite for prime Indian Grade A office spaces.
What is the impact of GCCs on India's office leasing landscape?
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., with Delhi NCR capturing close to 23 percent of that demand.
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