Mumbai Surges to Top of India's Commercial Real Estate Market with 28% Rent Increase
The Mumbai Metropolitan Region (MMR) has become India's most expensive commercial real estate market, with average rentals increasing by 28% from ₹131 to ₹168 per sq ft from 2022 to 2025. This surge is driven by a post-pandemic demand for premium office spaces.
Commercial Real EstateRental ValuesMumbai Metropolitan RegionOffice SpaceAnarockReal EstateMay 24, 2025
The primary market in MMR, including areas like Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East, continues to be the most preferred by sectors such as finance, IT/ITeS, and startups. These areas are known for their world-class infrastructure and connectivity, making them ideal for businesses looking to establish a strong presence in the region.
Hyderabad witnessed the second-highest growth across major cities in India, with rents growing nearly 24.1 per cent from ₹59 per sq ft in 2022 to ₹72 per sq ft in 2025. The city's robust IT and ITeS sectors, along with its growing prominence as a hub for startups, have driven this significant increase in rental values.
In Delhi NCR, the rental value grew nearly 20 per cent from ₹92 to ₹110 per sq ft in the same period. This growth is primarily attributed to infrastructure projects and the growing demand for office space in Noida and Gurugram. These areas have seen a surge in development, making them attractive for businesses looking to expand their operations in the National Capital Region.
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 continue to attract global customers due to their well-established IT/ITeS ecosystems and supportive infrastructure.
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 maintained a balanced approach to development, ensuring sustainable growth in the commercial real estate market.
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, indicating a strong investment climate and robust market fundamentals.
Frequently Asked Questions
Which city has seen the highest increase in rental values for commercial real estate in India?
The Mumbai Metropolitan Region (MMR) has seen the highest increase in rental values for commercial real estate in India, 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 by businesses for office spaces?
The primary areas in MMR that are most preferred by businesses for office spaces include Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East. These areas are known for their world-class infrastructure and connectivity.
How much did rental values increase in Hyderabad from 2022 to 2025?
Rental values in Hyderabad increased by nearly 24.1 per cent 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.
Which regions in Bengaluru are attracting global customers for office spaces?
Regions in Bengaluru that are attracting global customers for office spaces include Whitefield, Outer Ring Road, and Electronic City, known for their well-established IT/ITeS ecosystems and supportive infrastructure.
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