India’s top seven cities are seeing a notable rise in office rental rates in 2024, with increases ranging between 4% and 8.2% year-on-year, according to a report from real estate consultancy Vestian. The spike in demand is driven by strong economic momentum, rapid urbanisation, and an influx of global firms setting up operations in the country.

Delhi led the surge with an 8.2% jump, pushing monthly rents to USD 0.9 per sq ft. Chennai followed closely with a 7.7% rise to USD 0.8, while Mumbai’s rents climbed 6.7% to USD 1.6 per sq ft. Other major cities like Bengaluru, Pune, and Hyderabad posted gains between 4.4% and 4.7%, while Kolkata saw the lowest rise at 3.8%.

Meanwhile, global office rental markets displayed mixed performance. Cities like New York, Shanghai, Hong Kong, and Seattle experienced declines in rental values, with Shanghai posting the steepest fall at 6.8%. In contrast, London and Miami bucked the trend, registering strong growth of 8.6% and 7.3%, respectively. Singapore and Boston saw only modest gains.

Vestian CEO Shrinivas Rao attributed the dip in global rents to changing workplace models and the rise of technologies like generative AI, which are reshaping how companies view and use office spaces. “This shift is influencing occupancy strategies across major markets,” he noted.

India, however, is moving in the opposite direction. “Global firms are increasingly looking at India as a strategic office location,” Rao said. “They’re drawn by our large pool of skilled professionals, cost efficiency, and growing consumer base.”

He also highlighted the booming demand for premium office spaces in commercial hotspots such as Mumbai’s Bandra-Kurla Complex (BKC) and Delhi’s Connaught Place, where rents have hit USD 3–4 per sq ft per month. These micro-markets continue to attract high-end tenants from sectors like technology and finance.

The report clarifies that while the global office market navigates uncertainty, India’s commercial real estate is riding an intense upward wave and shows no signs of slowing down.