According to the IIM-B and CRE Matrix “Commercial Property Rental Index” report, Delhi recorded a sharp 16.4% rise in premium office rents. In comparison, Mumbai maintained its market strength with 3.6% quarterly growth. Gurugram, Navi Mumbai, and Chennai’s northern suburbs also saw strong gains, signalling expanding demand beyond traditional business districts.
India’s top office markets are heating up again, with new data from the Indian Institute of Management-Bengaluru (IIM-B) and CRE Matrix revealing sharp increases in prime office rents across Tier-1 cities. The Commercial Property Rental Index (CPRI) report highlights how rising occupier demand, strong leasing momentum, and economic recovery are driving rental appreciation across key business hubs.
Delhi emerged as the standout performer, witnessing an impressive 16.4% annual surge in premium office rents — the highest among all major cities. Mumbai, while showing steadier growth at 3.6% quarter-on-quarter, continues to lead as India’s most resilient and liquid office market, backed by consistent demand from corporates, financial institutions, and global capability centres (GCCs).
Gurugram and Navi Mumbai Register Strong Gains
Among satellite cities, Gurugram posted a solid 3.2% quarterly increase and 8.1% annual growth in office rents, driven by demand in business corridors such as Golf Course Extension and NH-48. Navi Mumbai emerged as a long-term outperformer, with a 3-year CAGR of 9%, highlighting its rise as a cost-effective yet well-connected office destination.
The study, covering 10 major Indian cities — Bengaluru, Hyderabad, Mumbai, Gurugram, Pune, Chennai, Noida, Navi Mumbai, Delhi, and Thane — collectively represents over 90% of India’s institutional-grade office stock, underscoring the country’s strong commercial real estate fundamentals.
Emerging Micro-Markets Lead Quarterly Surge
Interestingly, the report points to the growing prominence of emerging micro-markets, where companies are finding competitive rental values and better infrastructure.
Chennai’s northern suburbs recorded the highest quarter-on-quarter growth nationwide at 9.8%, while Bengaluru’s Whitefield followed closely with an 8% increase over the last quarter.
Bengaluru also maintained the highest rental index value (243) across India, reaffirming its status as the technology capital and a preferred market for flexible workspaces, IT/ITeS firms, and hybrid-ready campuses.
NCR’s NH-48 and Noida’s Suburban Belt Gain Momentum
Within the National Capital Region (NCR), NH-48 Prime in Gurugram led rental performance, with a 10.1% CAGR and a 16% annual rent increase, reflecting its premium positioning and sustained tenant demand. Suburban Noida also posted impressive figures, registering an 8.7% CAGR and 9.9% annual rental growth — driven by demand from IT, BFSI, and coworking spaces.
These micro-markets are increasingly attracting tenants seeking proximity to talent clusters, metro connectivity, and Grade-A infrastructure — factors reshaping India’s evolving office geography.
Outlook: Rents Poised for Further Growth
The report underscores a clear trend — India’s office market is no longer confined to traditional CBDs. With strong corporate leasing, stable macroeconomic conditions, and the rise of hybrid work, both established metros and emerging corridors are expected to see continued rental growth.
As tenant preferences shift toward flexible, tech-integrated workspaces, analysts expect rental yields to remain strong through 2025, with newer markets like Navi Mumbai, Noida, and North Chennai taking centre stage alongside the traditional powerhouses of Delhi, Mumbai, and Bengaluru.
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