Business EconomyPosted at: May 23 2025 6:41PM


MMR’s office rental values zoom 28 pc from 2022 to 2025, Hyderabad Next with 24.1 pc

Mumbai, May 23 (UNI) Despite global macroeconomic upheavals and uncertainties, India’s commercial real estate market remains on a remarkable upswing, according to the latest ANAROCK data saying the 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 percent of
total office space leasing in India – ahead of all other countries,” said 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.” he said.
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.
After a brief (COVID) 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,” said 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 pc of that demand. Over the past two years, they have accounted for over 37 pc 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 pc from Rs 131 per sq. ft. in 2022 to Rs 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.
Delhi NCR: registered a strong rise from Rs 92 to Rs 110/sq. ft. (20 pc) – 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 pc increase over four years -
benefiting from its affordability, proactive government policies, and its thriving IT corridor.
Bangalore: The tech capital saw a 15.8 pc increase, with Whitefield, ORR, and Electronic City continuing to attract global occupiers.
Pune and Chennai: These showed only moderate rental growth of 11.1 pc and 9.1 pc respectively,
mirroring the steady but controlled growth in their IT/ITES and industrial sectors.
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.
“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. The hybrid work model has matured - not as a shift away from offices, but as a strategic blend of physical and flexible spaces. This evolution has ensured a strong leasing pipeline, particularly in tech parks, co-working hubs, and SEZs.
As demand continues to outpace supply in prime micro-markets and India ramps up its stature as a
global outsourcing powerhouse, rental values will continue to rise consistently.
UNI PC BM
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