NEW DELHI – India’s commercial real estate market is witnessing a significant upswing, with the top six cities recording an average rental growth of 18.35% for office spaces between 2022 and 2025, according to latest data from Anarock Group. The Mumbai Metropolitan Region (MMR) has led this surge, with office rental values jumping a staggering 28%, making it the most expensive commercial market in the country.
The post-pandemic landscape, characterized by a strong return-to-office movement and robust demand from Global Capability Centres (GCCs), technology firms, and the Banking, Financial Services, and Insurance (BFSI) sector, has fueled this impressive growth in rental values across key business hubs.
“The future of work in India is not remote but reimagined,” stated Peush Jain, MD – Commercial Leasing & Advisory, Anarock Group. “The hybrid work model has matured – not as a shift away from offices, but as a strategic blend of physical and flexible spaces. This evolution has ensured a strong leasing pipeline, particularly in tech parks, co-working hubs, and SEZs.”
Mumbai Leads, Hyderabad Follows
The MMR saw office rents climb from ₹131 per sq ft in 2022 to ₹168 per sq ft in 2025. Hyderabad emerged as the second-fastest growing rental market, with a 24.1% surge from ₹59 to ₹72 per sq ft. This growth in Hyderabad is attributed to its strong IT corridor, cost competitiveness, and investor-friendly policies.
GCCs: A Major Transformation Driver
A significant factor contributing to this rental boom is the aggressive expansion of GCCs. “GCCs have become the single-biggest transformation driver on India’s office leasing landscape,” Jain noted. “Our data shows that in Q1 2025 alone, GCCs leased a staggering 8.35 million sq ft, with Delhi-NCR capturing close to 23% of that demand. Over the past two years, they have accounted for over 37% of all office leasing across the top seven cities.”
Interestingly, despite “considerable business policy uncertainty,” the US accounts for 45% of total office space leasing in India, ahead of all other countries, according to Jain.
City-Wise Rental Growth (2022-2025):
- Mumbai Metropolitan Region (MMR): Rose 28% (from ₹131 to ₹168 per sq ft).
- Hyderabad: Surged 24.1% (from ₹59 to ₹72 per sq ft).
- Delhi NCR: Increased 20% (from ₹92 to ₹110 per sq ft), supported by infrastructure growth in Noida and Gurugram.
- Bengaluru: Grew 15.8% (from ₹101 to ₹117 per sq ft), fuelled by consistent tech sector demand.
- Pune: Rose 11.1% (from ₹81 to ₹90 per sq ft), reflecting steady demand in IT and industrial zones.
- Chennai: Registered a more measured 9.1% growth (from ₹77 to ₹84 per sq ft), indicating stable absorption in key business districts.
The consistent rise in rentals, especially in cities like Hyderabad and Delhi NCR where capital value growth has been more controlled, has led to improved rental yields. This, coupled with Real Estate Investment Trusts (REITs) gaining investor traction and absorption levels surpassing pre-COVID benchmarks, indicates a bullish sentiment among investors in India’s office space market.
