Office Rent Surge in Major Indian Cities: Anarock Highlights Prime Workspace Demand

Office rent in Mumbai, Hyderabad, and Delhi-NCR has increased significantly in the past 2.5 years, driven by strong demand for prime workspaces. According to real estate consultant Anarock, rental values are showing healthy growth across major metros as businesses push for a full-fledged return to office life.

New Delhi, May 26 (PTI) Office rent grew 28 per cent in the Mumbai Metropolitan Region (MMR) in the last two and a half years, despite global economic uncertainties. Anarock's report highlights that rental values are increasing due to the strong demand for prime workspaces.

Notably, the US, which is seeing considerable business policy uncertainty, accounts for 45 per cent of total office space leasing in India – ahead of all other countries. Peush Jain, MD - Commercial Leasing & Advisory at Anarock Group, stated that US-based banks contribute as much as 48 per cent of BFSI (Banking, Financial Services, and Insurance) leasing in Mumbai.

American companies' appetite for prime Indian Grade A office spaces remains undiminished, Jain added. From 2022 to 2025, a powerful post-pandemic rebound has fuelled consistent and growing demand for premium workspaces, especially in hotspots like MMR, Delhi-NCR, and Hyderabad.

In MMR, the average monthly office rent has risen to Rs 168 per square foot from Rs 131 per square foot in 2022. Delhi-NCR has registered a 20 per cent growth in rent from Rs 92 to Rs 110 per square foot. Hyderabad saw a growth in office rental values of 24.1 per cent to Rs 72 from Rs 58 per square foot.

Office rent in Bengaluru rose 16 per cent to Rs 95 per square foot from Rs 82 in 2022. Pune and Chennai markets showed only moderate rental growth of 11.1 per cent and 9.1 per cent, respectively. The office rent in Pune is Rs 80 per square foot and in Chennai Rs 72 per square foot.

Shesh Rao Paplikar, Founder & CEO of BHIVE workspaces, commented, 'The 16 per cent increase in office rentals in Bengaluru signals a resilient rebound in commercial real estate, driven primarily by strong demand from technology, GCCs (Global Capability Centers), and flexible workspace providers.'

This rental surge reflects rising confidence in India's talent ecosystems, infrastructure upgrades, and return-to-office mandates, he added. Kirthi Chilukuri, Founder & MD of Stonecraft Group, said, 'The surge in office rentals across India's major cities signals a renewed business confidence and a decisive shift toward future-ready workspaces. Hyderabad's impressive 24 per cent growth highlights its transformation into a go-to hub for tech and innovation-driven enterprises, backed by strong infrastructure and a dynamic talent pool.'