Office Rents Surge Across Major Indian Cities: MMR, Hyderabad, and Bengaluru Lead the Way
Office rents in major Indian cities have seen significant increases, with the Mumbai Metropolitan Region (MMR) leading the surge at 28%, followed by Hyderabad at 24%, and Bengaluru at 16%. This growth is driven by strong demand for prime workspaces and renewed business confidence.
Office RentsReal EstateMumbaiHyderabadBengaluruReal Estate NewsMay 27, 2025
Despite considerable business policy uncertainties, the United States (US) accounts for 45% of total office space leasing in India, leading all other countries. 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 & chief executive officer (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.
This surge in office rents is a clear indicator of the growing importance of these cities in the global business landscape, with companies from various sectors investing heavily in prime office spaces to attract and retain top talent. The trend is expected to continue as businesses adapt to the new normal and focus on creating collaborative and innovative work environments.
Frequently Asked Questions
What is the primary reason for the surge in office rents in major Indian cities?
The primary reason for the surge in office rents is the strong demand for prime workspaces, driven by rising confidence in India’s talent pools, infrastructure improvements, and return-to-office policies.
Which city has seen the highest increase in office rents?
The Mumbai Metropolitan Region (MMR) has seen the highest increase in office rents, with a surge of 28% over the past two and a half years.
What percentage of total office space leasing in India is accounted for by the United States?
The United States accounts for 45% of total office space leasing in India, leading all other countries.
How much have office rents increased in Hyderabad?
Office rents in Hyderabad have grown by 24.1%, increasing to Rs. 72 (US$ 0.85) per square foot.
What factors are contributing to the growth in office rents in Bengaluru?
The growth in office rents in Bengaluru is attributed to strong demand from technology firms, Global Capability Centres (GCCs), and flexible workspace providers, reflecting a resilient commercial real estate market.
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