Office Rent Surges by 28% in MMR, 24% in Hyderabad, and 20% in Delhi-NCR: Anarock Report
A recent report by Anarock reveals significant growth in office rent across major Indian metros, driven by increased demand for prime workspaces. The surge is particularly notable in MMR, Hyderabad, and Delhi-NCR.
Office RentReal EstateMmrHyderabadDelhincrReal EstateMay 26, 2025
In Mumbai Metropolitan Region (MMR), the average monthly office rent has risen by 28% from Rs 131 per square foot in 2022 to Rs 168 per square foot in 2025. This growth is driven by a full-fledged return to office life and a strong appetite from US-based companies, which account for 45% of total office space leasing in India.
Peush Jain, Managing Director of Commercial Leasing & Advisory at Anarock Group, highlighted that American companies' interest in prime Indian Grade A office spaces remains strong. He noted, '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.'
Delhi-NCR has also witnessed a significant 20% increase in office rent, from Rs 92 per square foot in 2022 to Rs 110 per square foot in 2025. This growth underscores the region's importance as a commercial hub, with a steady demand for premium office spaces.
Hyderabad, a key tech and innovation hub, saw a 24.1% increase in office rental values, rising from Rs 58 per square foot in 2022 to Rs 72 per square foot in 2025. The city's dynamic talent pool and robust infrastructure have contributed to this surge, making it an attractive destination for tech-driven enterprises.
Bengaluru, often referred to as the 'Silicon Valley of India,' experienced a 16% increase in office rent, from Rs 82 per square foot in 2022 to Rs 95 per square foot in 2025. The rise is primarily driven by strong demand from technology companies, Global Capability Centers (GCCs), and flexible workspace providers.
Pune and Chennai, while showing moderate rental growth, have also seen positive trends. Pune's office rent increased by 11.1% to Rs 80 per square foot, and Chennai's rent grew by 9.1% to Rs 72 per square foot. These moderate increases reflect the steady but cautious return to office life in these markets.
Shesh Rao Paplikar, Founder & CEO of BHIVE workspaces, commented on the data, stating, '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, and flexible workspace providers.' He added that this rental surge reflects rising confidence in India’s talent ecosystems, infrastructure upgrades, and return-to-office mandates.
Kirthi Chilukuri, Founder & MD of Stonecraft Group, noted, '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.'
Overall, the report indicates a positive outlook for the commercial real estate sector in India, with a strong emphasis on prime workspaces and a growing demand from both domestic and international businesses.
Frequently Asked Questions
What is the percentage increase in office rent in MMR over the past 2.5 years?
The office rent in MMR has increased by 28% over the past 2.5 years.
Which region has seen the highest growth in office rent?
Hyderabad has seen the highest growth in office rent, with a 24.1% increase.
What factors are driving the increase in office rent?
The increase in office rent is driven by a robust demand for prime workspaces, a full-fledged return to office life, and strong interest from US-based companies.
How much has the office rent in Delhi-NCR increased?
The office rent in Delhi-NCR has increased by 20%, from Rs 92 to Rs 110 per square foot.
What is the current average office rent in Bengaluru?
The current average office rent in Bengaluru is Rs 95 per square foot.
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