Office Rents Soar in Major Indian Cities: Mumbai Sees 28% Surge
Office rents in major Indian cities, particularly Mumbai, have witnessed significant growth over the past two and a half years, driven by strong demand and business confidence.
Office RentsCommercial Real EstateMumbaiHyderabadBengaluruReal Estate MumbaiMay 27, 2025
In Mumbai, US-based banks contribute 48% of leasing within the banking, financial services, and insurance (BFSI) sector. Average monthly office rents in MMR have increased to Rs. 168 (US$ 1.97) per square foot from Rs. 131 (US$ 1.54) in 2022. Delhi-National Capital Region (NCR) recorded a 20% rise to Rs. 110 (US$ 1.29) per square foot. Hyderabad’s rents grew 24.1% to Rs. 72 (US$ 0.85) per square foot. Bengaluru saw a 16% increase to Rs. 95 (US$ 1.12) per square foot. In contrast, Pune and Chennai experienced more moderate growth of 11.1% and 9.1%, with rents at Rs. 80 (US$ 0.94) and Rs. 72 (US$ 0.85) per square foot, respectively.
Industry experts attribute this rental growth to rising confidence in India’s talent pools, infrastructure improvements, and return-to-office policies. Founder & CEO of BHIVE Workspaces, Mr. Shesh Rao Paplikar, noted Bengaluru’s 16% increase reflects strong demand from technology firms, Global Capability Centres (GCCs), and flexible workspace providers, signalling a resilient commercial real estate market. Meanwhile, Founder & Managing Director of Stonecraft Group, Mr. Kirthi Chilukuri, emphasised that the rental surge across major cities indicates renewed business confidence and a shift towards future-ready workspaces. In particular, Hyderabad’s 24% rental growth underscores its evolution into a key hub for technology and innovation-driven enterprises, supported by robust infrastructure and a dynamic talent base.
The robust growth in office rents is a positive indicator of the Indian economy's resilience and the attractiveness of its major cities as business hubs. As companies continue to invest in India, the demand for quality office spaces is expected to remain strong, further driving rental prices in the coming years.
Frequently Asked Questions
What is the main reason for the surge in office rents in Mumbai?
The main reason for the surge in office rents in Mumbai is the strong demand for prime workspaces and the significant contribution from US-based banks in the BFSI sector.
How much have office rents increased in Hyderabad?
Office rents in Hyderabad have increased by 24.1% to Rs. 72 (US$ 0.85) per square foot.
Which city has experienced the most moderate growth in office rents?
Pune and Chennai have experienced the most moderate growth in office rents, with increases of 11.1% and 9.1%, respectively.
What factors are contributing to the rental growth in major Indian cities?
The rental growth in major Indian cities is being driven by rising confidence in India’s talent pools, infrastructure improvements, and return-to-office policies.
What does the rental surge indicate about business confidence in India?
The rental surge across major cities indicates renewed business confidence and a shift towards future-ready workspaces, particularly in technology and innovation-driven enterprises.
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