Mumbai Tops India’s Office Rental Growth; Hyderabad, Delhi-NCR Follow

Mumbai’s Office Market Leads India’s Rental Surge: City-wise Story of Growth

In the wake of India’s post-pandemic revival, the country’s commercial real estate landscape has undergone a dramatic transformation. At the heart of this resurgence stands the Mumbai Metropolitan Region (MMR), which has now claimed the title of India’s most expensive office market, outpacing all other metros with a remarkable surge in rental values.

Mumbai: The Crown Jewel of Commercial Real Estate

Once bustling with the cautious optimism of recovery, Mumbai’s prime business districts—Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East—have become magnets for finance, IT/ITeS, and startup sectors. The numbers tell a compelling story: average office rents in MMR soared from ₹131 per sq ft in 2022 to ₹168 per sq ft in 2025, marking a staggering 28% jump. This surge is a testament to the city’s enduring appeal and the insatiable demand for premium office spaces.

The post-pandemic rebound has not just revived Mumbai’s commercial core—it has redefined it, making it the benchmark for office space value in India.

Hyderabad: The Rising Star

Trailing closely behind Mumbai, Hyderabad has emerged as a powerhouse in its own right. The city witnessed a 24.1% increase in office rents, climbing from ₹59 per sq ft in 2022 to ₹72 per sq ft in 2025. Hyderabad’s dynamic tech ecosystem and vibrant co-working culture have positioned it as a top choice for businesses seeking value and growth.

Delhi-NCR: Powered by Infrastructure and Ambition

Delhi-NCR’s commercial real estate market has also seen robust expansion, with rents rising by 20%—from ₹92 to ₹110 per sq ft—between 2022 and 2025. The region’s growth is driven by major infrastructure upgrades and a surge in demand for office spaces in Gurugram and Noida, cementing its status as a strategic hub for both national and multinational firms.

Bengaluru: The Tech Magnet

Bengaluru, India’s IT capital, continues to attract global attention. Office rents here grew by 15.8%, moving from ₹82 per sq ft in 2022 to ₹95 per sq ft in 2025. Key corridors like Whitefield, Outer Ring Road, and Electronic City remain the preferred destinations for technology giants and startups alike.

Pune and Chennai: Steady and Stable

While Mumbai and Hyderabad stole the spotlight, Pune and Chennai demonstrated steady, regulated growth. Pune’s office rents increased by 11.1%, and Chennai’s by 9.1%, reflecting the cities’ stable expansion in IT/ITES and industrial sectors.

Capital Values Outpace Rentals

A deeper look reveals that the capital values of commercial properties in India’s top seven cities surged by an impressive 128% between 2021 and 2024. However, rental values in many micro-markets appreciated at a slower pace, highlighting a unique dynamic where property ownership became even more lucrative.

Investor Confidence and the Road Ahead

As global firms continue to anchor their operations in India, investor sentiment remains buoyant. The consistent rise in rentals—especially in Hyderabad and Delhi-NCR, where property prices are still relatively affordable—has pushed up rental yields and made commercial real estate an attractive proposition for both domestic and international investors.

“Work is not becoming remote—it is being reimagined. Hybrid models are no longer alternatives but enhancements to traditional office culture. This evolution is keeping demand high in India’s key business districts.”