Mumbai Surges to Top as India's Most Expensive Office Market with 28% Rental Increase
The Mumbai Metropolitan Region (MMR) has become India's costliest commercial real estate market, with rentals jumping 28% from ₹131 to ₹168 per sq ft from 2022 to 2025, driven by post-pandemic demand for premium office spaces.
Commercial Real EstateRental ValuesOffice SpaceMumbai Metropolitan RegionAnarockReal Estate NewsMay 24, 2025
The primary market in MMR, including Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East, continues to remain the most preferred areas by sectors such as finance, IT/ITeS, and startups. This significant increase in rental value is due to the post-pandemic rebound and soaring demand for premium office spaces in major cities such as MMR, Delhi NCR, Hyderabad, and Bengaluru, the report stated.
Hyderabad witnessed the second-highest growth across major cities in India, where rents grew nearly 24.1 per cent from ₹59 per sq ft in 2022 to ₹72 per sq ft in 2025. The rental value in Delhi-NCR grew nearly 20 per cent from ₹92 to ₹110 per sq ft in this period. This growth is primarily attributed to infrastructure projects and the growing demand for office space in Noida and Gurugram.
Meanwhile, office rents in Bengaluru increased 15.8 per cent from ₹82 per sq ft in 2022 to ₹95 per sq ft in 2025. Regions such as Whitefield, Outer Ring Road, and Electronic City still attract global customers. Likewise, Pune and Chennai experienced moderate rental increases of 11.1 per cent and 9.1 per cent, respectively, reflecting the stable yet regulated growth in their IT/ITES and industrial sectors.
According to a previous report by Anarock released in March 2025, capital values in the top seven cities rose significantly by 128 per cent between 2021 and 2024, while rental values in many micro markets appreciated less than the overall capital value growth. In major cities, including Bengaluru, Greater Mumbai, Delhi NCR, and Hyderabad, the average capital values rose higher than rental values between 2021-end and 2024-end.
Frequently Asked Questions
Which city in India has seen the highest increase in office rental values?
The Mumbai Metropolitan Region (MMR) has seen the highest increase in office rental values, with a 28% rise from ₹131 to ₹168 per sq ft from 2022 to 2025.
What are the primary areas in MMR that are most preferred for office spaces?
The primary areas in MMR that are most preferred for office spaces include Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East.
Which city ranks second in terms of rental growth in India?
Hyderabad ranks second in terms of rental growth in India, with rents growing nearly 24.1% from ₹59 per sq ft in 2022 to ₹72 per sq ft in 2025.
What factors contributed to the growth in rental values in Delhi-NCR?
The growth in rental values in Delhi-NCR is primarily attributed to infrastructure projects and the growing demand for office space in Noida and Gurugram.
How much did capital values in the top seven cities increase between 2021 and 2024?
Capital values in the top seven cities increased significantly by 128% between 2021 and 2024.
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