Top six cities sees average growth of 18 percent in office space rent in three years

India’s top six cities have recorded an average rental growth of 18.35% between 2022 and 2025 for office spaces, according to Anarock data. Mumbai Metropolitan Region (MMR) office rental values have surged by 28% from ?131 per sq ft in 2022 to ?168 in 2025, outpacing other top metro markets. Hyderabad emerged as the second-fastest growing rental market boosted by a strong IT corridor, cost competitiveness, and investor-friendly policies. The post-pandemic revival, supported by a sustained return-to-office movement and strong demand from Global Capability Centres (GCCs), tech firms, and BFSI players, has fueled robust growth in rental values across key business hubs. “Notably the US, which is seeing considerable business policy uncertainty, accounts for 45% of total office space leasing in India ahead of all other countries,” says Peush Jain, MD - Commercial Leasing & Advisory, Anarock Group. GCCs have become the single-biggest transformation driver on India’s office leasing landscape. Our data shows that in Q1 2025 alone, GCCs leased a staggering 8.35 million sq ft, with Delhi-NCR capturing close to 23% of that demand. Over the past two years, they have accounted for over 37% of all office leasing across the top seven cities.

Rental growth across six cities (2022–2025)

MMR: Office rental values in the Mumbai Metropolitan Region rose 28%, from 131 to 168 per sq ft,making it the most expensive commerical market in India.

Hyderabad: Rentals surged by 24.1%, climbing from ?59 to ?72 per sqft driven by a booming IT corridor and pro-investor policies.

Delhi NCR: The region saw a 20% increase in rentals, from ?92 to 110per sq ft, supported by infrastructure growth in Noida and Gurugram.

Bengaluru: Office rents grew 15.8%, with values rising from ?101 to ?117 per sq ft, fuelled by consistent tech sector demand.

Pune: Rentals rose 11.1%, from ?81 to ?90 per sq ft, reflecting steady demand in IT and industrial zones.

Chennai: The city registered a more measured 9.1% growth, with rentals moving from ?77 to ?84 per sq ft, indicating stable absorption in key business districts. The consistent rise in rentals, particularly in cities with controlled capital value growth like Hyderabad and Delhi NCR, has led to improved rental yields. With REITs gaining investor traction and absorption levels surpassing pre-COVID benchmarks, investor sentiment remains bullish.

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