Mumbai: India’s commercial real estate market has witnessed a substantial surge in office rental values, with the Mumbai Metropolitan Region (MMR) topping the charts at ₹168 per sq. ft. in 2025, a 28% increase from ₹131 in 2022, according to the latest report by ANAROCK Group.
Despite global economic uncertainties, India’s commercial office market remains resilient, driven by Global Capability Centres (GCCs), major BFSI players, and a post-COVID shift back to structured, in-office operations. This rising demand has pushed rental values upwards in all major metro cities, with MMR emerging as the most expensive commercial office market in India.
“In Q1 2025 alone, GCCs leased 8.35 million sq. ft. of space across top metros, with Delhi NCR alone accounting for 23% of that demand,” said Peush Jain, MD – Commercial Leasing & Advisory at ANAROCK Group. “India’s office leasing landscape is now firmly on a growth trajectory.”
Office Rental Values See Strong Growth Across Major Cities
According to ANAROCK, here’s how office rental values have evolved from 2022 to 2025:
- City | 2022 (₹/sq. ft.) | 2025 (₹/sq. ft.) | Growth (%)
- MMR | 131 | 168 | 28.0%
- Hyderabad | 58 | 72 | 24.1%
- Delhi NCR | 92 | 110 | 20.0%
- Bengaluru | 82 | 95 | 15.8%
- Pune | 72 | 80 | 11.1%
- Chennai | 66 | 72 | 9.1%
Rental Growth Driven by Post-Pandemic Recovery and Tech-Led Demand
The report highlights how the hybrid work model has evolved—not as a retreat from physical office spaces but as a more strategic blend of flexible and on-site work environments. This shift, paired with a resurgence in tech park absorption and co-working spaces, is powering steady rental yields and improved investor confidence, especially in cities like Hyderabad and Delhi NCR where capital values are still competitive.
MMR’s Prime Micro-Markets See Peak Demand
Areas like Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East are leading the demand in MMR, driven by finance, IT/ITeS, and start-up sectors. The city continues to attract U.S.-based companies, which account for 45% of total office leasing in India.
“The future of work in India is not remote—it’s reimagined,” added Jain, pointing to the growing confidence in India’s metropolitan CRE landscape.
As the market outpaces supply in prime zones and India strengthens its global outsourcing stature, office rental values are expected to rise steadily, presenting lucrative opportunities for investors and developers alike.
