MMR’s Office Rental Values Zoom 28% from 2022 to 2025, Hyderabad Next with 24.1%
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% 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% 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% of that demand. Over the past two years, they have accounted for over 37% 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% – 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%) – 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% increase over four years – benefiting from its affordability, proactive government policies, and its thriving IT corridor.
Bangalore: The tech capital saw a 15.8% increase, with Whitefield, ORR, and Electronic City continuing to attract global occupiers.
Pune & Chennai: These showed only moderate rental growth of 11.1% and 9.1% respectively, mirroring the steady but controlled growth in their IT/ITES and industrial sectors.