Mumbai Surges to Top as India's Priciest Office Market with 28% Rent Increase
The Mumbai Metropolitan Region (MMR) has become the most expensive commercial real estate market in India, with rental values increasing by 28% from ₹131 to ₹168 per sq ft between 2022 and 2025. The surge is driven by post-pandemic demand for premium office spaces.
MumbaiCommercial Real EstateRental ValuesOffice SpaceAnarockReal Estate MumbaiMay 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. These areas have seen a significant influx of businesses looking for premium office spaces, contributing to the rental surge.
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 city's strategic location and robust IT infrastructure have attracted numerous tech companies, driving up the demand for office spaces.
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. These areas have seen significant development, making them attractive for businesses looking to expand.
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. The city's reputation as a tech hub continues to draw multinational corporations and startups.
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. These cities have seen a steady demand for office spaces, driven by their strong industrial and tech ecosystems.
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. This indicates a strong market for commercial real estate investments in these areas.
Frequently Asked Questions
What is the current average rental value in the Mumbai Metropolitan Region (MMR)?
The current average rental value in the Mumbai Metropolitan Region (MMR) is ₹168 per sq ft.
Which city in India saw the second-highest growth in office rental values?
Hyderabad saw the second-highest growth in office rental values, with a 24.1 per cent increase from ₹59 to ₹72 per sq ft between 2022 and 2025.
What factors are driving the increase in rental values in major Indian cities?
The increase in rental values is driven by the post-pandemic rebound and soaring demand for premium office spaces, along with infrastructure development and the growing presence of tech and finance sectors.
How much did the rental value in Delhi-NCR increase from 2022 to 2025?
The rental value in Delhi-NCR increased by nearly 20 per cent, from ₹92 to ₹110 per sq ft.
What is the role of Anarock in this market analysis?
Anarock is a property consulting firm that conducted the analysis of rental and capital values in major Indian cities, providing insights into the commercial real estate market trends.
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