Office Rentals Skyrocket: MMR, Hyderabad, and Delhi-NCR Lead the Charge
Real estate consultant Anarock reports a significant rise in office rental values across major Indian metros, with MMR leading the pack at 28% growth in the past 2.5 years.
Office RentReal EstateAnarockMmrHyderabadReal Estate NewsMay 27, 2025
In the 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 currently. This growth is attributed to the high demand for premium office spaces, especially from US-based banks, which contribute 48% of BFSI (Banking, Financial Services, and Insurance) leasing in the region.
Peush Jain, MD of Commercial Leasing & Advisory at Anarock Group, noted, “Notably, the US, which is seeing considerable business policy uncertainty, accounts for 45% of total office space leasing in India – ahead of all other countries.” This trend underscores the undiminished appetite of American companies for prime Indian Grade A office spaces.
Delhi-NCR has also witnessed a notable 20% increase in office rents, from Rs 92 per square foot in 2022 to Rs 110 per square foot in 2025. Hyderabad, another key market, has seen a 24.1% growth, with rental values rising from Rs 58 per square foot to Rs 72 per square foot.
Bengaluru, a hub for technology and innovation, has experienced a 16% increase in office rentals, from Rs 82 per square foot in 2022 to Rs 95 per square foot in 2025. Shesh Rao Paplikar, Founder & CEO of BHIVE workspaces, commented, “The 16% 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.
Pune and Chennai have shown more moderate rental growth, with Pune experiencing an 11.1% increase to Rs 80 per square foot and Chennai seeing a 9.1% rise to Rs 72 per square foot. Kirthi Chilukuri, Founder & MD of Stonecraft Group, added, “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% growth highlights its transformation into a go-to hub for tech and innovation-driven enterprises, backed by strong infrastructure and a dynamic talent pool.”
These trends indicate a positive outlook for the commercial real estate sector in India, with key cities leading the charge in rental growth and demand for premium office spaces.
Frequently Asked Questions
What is the current average office rent in MMR?
The current average office rent in MMR is Rs 168 per square foot.
How much has office rent increased in Delhi-NCR over the past 2.5 years?
Office rent in Delhi-NCR has increased by 20% over the past 2.5 years, from Rs 92 to Rs 110 per square foot.
Which city has seen the highest percentage increase in office rent?
Hyderabad has seen the highest percentage increase in office rent, with a 24.1% growth from Rs 58 to Rs 72 per square foot.
What factors are driving the increase in office rent in major Indian cities?
The increase in office rent is driven by high demand for premium office spaces, strong business confidence, and a push for a full return to office life, especially from US-based companies.
How has Bengaluru's office rental market performed?
Bengaluru's office rental market has seen a 16% increase, from Rs 82 to Rs 95 per square foot, driven by strong demand from technology, GCCs, and flexible workspace providers.
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