Hyderabad is quickly becoming one of India’s top cities for rising office rents. From 2022 to 2025, office rental prices jumped by 24%, going from ₹59 to ₹72 per square foot each month.
But it’s the Mumbai Metropolitan Region (MMR) that saw the biggest increase. Rents there soared by 28% in the same period, climbing from ₹131 to ₹168 per square foot. Key areas like Bandra-Kurla Complex, Lower Parel, and Andheri East continue to attract major businesses in finance, technology, and startups.
Delhi NCR followed closely with a 20% jump in rents, thanks to strong demand in cities like Gurugram and Noida. These areas are benefiting from new infrastructure projects and better connectivity.
Bangalore saw a 15.8% rise, fueled by interest in hotspots such as Whitefield, Outer Ring Road, and Electronic City. The demand here mainly comes from multinational companies, especially in the tech sector.
Pune and Chennai experienced more stable growth. Pune’s rents rose by 11.1%, while Chennai saw a 9.1% increase. Both cities continue to expand in the IT/ITES and industrial sectors.
Despite global economic uncertainty, India’s commercial real estate market is staying strong. More companies are moving back to regular office setups instead of hybrid models. This shift is especially visible among big players like Global Capability Centres (GCCs), tech firms, and banking and finance companies.
In the first quarter of 2025, GCCs leased about 8.35 million square feet of office space. Of that, nearly 23% was in Delhi NCR alone. Over the past two years, GCCs made up more than 37% of all office leasing in India’s seven major cities. This shows their continued investment in expanding operations in urban centers.
Investor interest is also on the rise. Rental yields are improving, especially in Hyderabad and Delhi NCR, where property prices remain attractive. With office space demand bouncing back to pre-pandemic levels and more attention on REITs (Real Estate Investment Trusts), the sector is showing solid signs of recovery.
According to Peush Jain, Managing Director at ANAROCK Group, the future of work in India is shaping into a smart mix of physical offices and flexible schedules. This has kept demand high in tech parks, co-working spaces, and special economic zones (SEZs).
As prime areas continue to see demand outpace supply, India’s position as a global outsourcing hub is pushing rental prices even higher. For both businesses and investors, the country’s commercial real estate market remains a strong bet for long-term growth.
