MMR’s Office Rental Values Zoom 28 per cent from 2022 to 2025; Hyderabad Next with 24.1 per cent

Mumbai: Despite global macroeconomic upheavals and uncertainties, India’s commercial real estate market remains on a remarkable upswing, finds the latest ANAROCK data. Rental values are showing healthy growth across major metros as businesses push harder for a full-fledged return to office life.

“Notably the US, which is seeing considerable business policy uncertainty, accounts for 45 per cent of total office space leasing in India – ahead of all other countries,” says Peush Jain, MD - Commercial Leasing & Advisory, ANAROCK Group. “In Mumbai, US-based banks contribute as much as 48 per cent of BFSI leasing. American companies’ appetite for prime Indian Grade A office spaces remains undiminished.”

From 2022 to 2025, a powerful post-pandemic rebound has fuelled consistent and growing demand for premium workspaces—especially in hotspots like the Mumbai Metropolitan Region (MMR), Delhi NCR, and Hyderabad.

Post-COVID Demand Driving Commercial Rentals

After a brief pandemic-induced pause, India’s commercial real estate market has gone from quick recovery into a new growth phase. As hybrid models give way to more traditional, structured in-office operations, companies are doubling down on their presence in prime business districts. The result has been a surge in demand for Grade A office spaces, driven by a mix of Global Capability Centres (GCCs), tech giants, and BFSI leaders.

“GCCs have become the single-biggest transformation driver on India’s office leasing landscape,” says Jain. “Our data shows that in Q1 2025 alone, GCCs leased a staggering 8.35 million sq. ft., with Delhi NCR capturing close to 23 per cent of that demand. Over the past two years, they have accounted for over 37 per cent of all office leasing across the top 7 cities, signalling a long-term commitment to the country’s metropolitan business ecosystems.

Meanwhile, the Mumbai Metropolitan Region (MMR) has emerged as the most expensive commercial market in India, with rental values soaring 28 per cent - from INR 131 per sq. ft. in 2022 to INR 168 in 2025. Prime micro-markets like Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East continue to attract top-tier demand from finance, IT/ITeS, and startup sectors.

Top Performing Cities in Commercial Rental Growth (after MMR)

Delhi NCR: Registered a strong rise from INR 92 to INR 110/sq. ft. (20 per cent) – driven primarily by infrastructure projects and rising demand in Noida and Gurugram.

Hyderabad: The city saw notable growth in office rental values – a 24.1 per cent increase over four years - benefiting from its affordability, proactive government policies, and its thriving IT corridor.

Bangalore: The tech capital saw a 15.8 per cent increase, with Whitefield, ORR, and Electronic City continuing to attract global occupiers.

Pune & Chennai: These showed only moderate rental growth of 11.1 per cent and 9.1 per cent respectively, mirroring the steady but controlled growth in their IT/ITES and industrial sectors.

Rental Yield & Investor Confidence

Steady growth in commercial office rentals is improving rental yields, particularly in cities like Hyderabad and Delhi NCR, where capital values remain competitive. With REITs gaining traction and office absorption back to pre-pandemic levels, investor sentiment in the commercial space remains optimistic despite global headwinds.

Sector Outlook

“The overall sentiment in India’s commercial real estate (CRE) market remains resilient and optimistic,” says Peush Jain. The future of work in India is not remote but reimagined.