Indian Commercial Rentals Surge as Global Firms Fuel Office Demand

Indian Commercial Rentals Defy Global Uncertainty

Despite global economic headwinds, commercial real estate rentals across India’s top cities have demonstrated remarkable growth from 2022 to 2025, according to a recent Anarock report. The surge is driven by robust demand from global corporations, particularly US-based firms, and the rapid expansion of global capability centres (GCCs).

City-Wise Rental Growth Highlights

• Mumbai Metropolitan Region (MMR): Rentals jumped 28% to ₹168 per sq ft per month, with US-based banks accounting for 48% of BFSI leasing.
• Hyderabad: Up by 24.1% to ₹72 per sq ft per month, reflecting the city’s growing appeal for tech and business services.
• Delhi NCR: Rose 20% to ₹110 per sq ft per month, capturing nearly 23% of Q1 2025 GCC leasing demand.
• Bengaluru: Increased 15.8% to ₹95 per sq ft per month, buoyed by IT and AI research demand, and remains a premier market for office leasing.
• Pune: Gained 11.1% to ₹80 per sq ft per month, with strong interest in tech parks and co-working hubs.
• Chennai: Saw a 9.1% rise to ₹72 per sq ft per month, as demand for premium workspaces continues to climb.

Global Firms and GCCs Drive Leasing Momentum

The US, despite its own business policy uncertainty, remains the largest driver of Indian office space demand—accounting for 45% of total leasing. According to Peush Jain, Managing Director – Commercial Leasing & Advisory at Anarock, “American companies’ appetite for prime Indian grade A office spaces remains undiminished.” In Q1 2025 alone, GCCs leased 8.35 million sq ft of office space, with a significant portion absorbed in Delhi NCR and Bengaluru.

Investor Optimism and the Future of Work

Investor sentiment in India’s commercial property market remains resilient, buoyed by the growing popularity of REITs and office absorption returning to pre-pandemic levels. The evolution of the hybrid work model is not a retreat from offices, but a strategic blend of physical and flexible spaces. This shift is fueling a strong leasing pipeline, especially in tech parks, co-working hubs, and special economic zones.

Outlook: Resilient Growth Ahead

As businesses push for a full-fledged return to office life and seek premium, future-ready workspaces, Indian commercial rentals are expected to maintain their upward trajectory. The country’s top cities—led by MMR, Delhi NCR, Hyderabad, and Bengaluru—are poised to remain magnets for global investment and innovation.