Office Rent Surges in Major Indian Cities: Anarock Report
Real estate consultant Anarock reports significant increases in office rent across major Indian cities, with MMR leading the pack at 28%, followed by Hyderabad at 24%, and Delhi-NCR at 20%. The growth is attributed to robust demand for prime workspaces and a strong return to office life.
Office RentReal EstateAnarockMmrHyderabadReal Estate MumbaiMay 26, 2025
In the Mumbai Metropolitan Region (MMR), office rent has increased by 28%, rising from Rs 131 per square foot in 2022 to Rs 168 per square foot in 2025. Peush Jain, MD of Commercial Leasing & Advisory at Anarock Group, noted that the US, which is experiencing considerable business policy uncertainty, accounts for 45% of total office space leasing in India, ahead of all other countries.
In MMR, US-based banks contribute as much as 48% of BFSI (Banking, Financial Services, and Insurance) leasing, further emphasizing the region's appeal to international firms. Jain highlighted that American companies' appetite for prime Indian Grade A office spaces remains undiminished, with a powerful post-pandemic rebound fueling consistent and growing demand for premium workspaces in hotspots like MMR, Delhi-NCR, and Hyderabad.
Delhi-NCR has also witnessed a 20% growth in office rent, with the average monthly rent increasing from Rs 92 to Rs 110 per square foot. This growth reflects the region's continued importance as a business hub, attracting both domestic and international companies.
Hyderabad has seen a 24.1% increase in office rental values, rising from Rs 58 to Rs 72 per square foot. Kirthi Chilukuri, Founder & MD of Stonecraft Group, noted that this surge in office rentals signals a renewed business confidence and a decisive shift toward future-ready workspaces. Hyderabad's impressive growth highlights its transformation into a go-to hub for tech and innovation-driven enterprises, backed by strong infrastructure and a dynamic talent pool.
Bengaluru has experienced a 16% increase in office rentals, with the average monthly rent rising from Rs 82 to Rs 95 per square foot. Shesh Rao Paplikar, Founder & CEO of BHIVE workspaces, commented that this increase reflects a resilient rebound in commercial real estate, driven primarily by strong demand from technology, GCCs (Global Capability Centers), and flexible workspace providers. The rental surge indicates rising confidence in India’s talent ecosystems, infrastructure upgrades, and return-to-office mandates.
Pune and Chennai have shown more moderate rental growth, with Pune experiencing a 11.1% increase to Rs 80 per square foot and Chennai seeing a 9.1% increase to Rs 72 per square foot. While the growth in these cities is not as dramatic as in MMR, Delhi-NCR, and Hyderabad, it still indicates a positive trend in the commercial real estate market.
Overall, the data from Anarock underscores the robust demand for office spaces in major Indian cities, driven by a combination of factors including economic recovery, business confidence, and the return to office life. As the country continues to recover from the pandemic, the commercial real estate sector is poised for further growth and development.
Frequently Asked Questions
What is the percentage increase in office rent in MMR?
The average monthly office rent in MMR has increased by 28%, rising from Rs 131 per square foot in 2022 to Rs 168 per square foot in 2025.
Which region has seen the highest growth in office rent?
Hyderabad has seen the highest growth in office rent, with a 24.1% increase from Rs 58 to Rs 72 per square foot.
What factors are driving the increase in office rent?
The increase in office rent is driven by robust demand for prime workspaces, a strong return to office life, and business confidence, particularly from US-based companies.
How much has office rent increased in Delhi-NCR?
Office rent in Delhi-NCR has increased by 20%, with the average monthly rent rising from Rs 92 to Rs 110 per square foot.
What is the role of US-based companies in the Indian office rental market?
US-based companies account for 45% of total office space leasing in India, particularly in MMR, highlighting their significant contribution to the growth in office rent.
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