India’s commercial office rental market is booming, with Mumbai leading a 28% rise and Hyderabad close behind at 24.1%. Driven by Global Capability Centres, BFSI, and tech firms, prime metros show strong demand for Grade A spaces. Investor confidence remains high as India redefines the future of work.
India’s commercial real estate sector is witnessing a robust comeback, defying global economic uncertainties and pandemic disruptions. According to recent ANAROCK data, office rental values across major metropolitan regions are experiencing significant growth, reflecting a strong return to structured, in-office work models.
The Mumbai Metropolitan Region (MMR) stands out as India’s most expensive commercial office market, with rental values jumping 28% from INR 131 per sq. ft. in 2022 to INR 168 in 2025. Prime business hubs such as Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East attract high demand from finance, IT/ITeS, and startup sectors, underscoring Mumbai’s critical financial and corporate centre role.
Hyderabad is not far behind, recording an impressive 24.1% rise in rental values over the same period. The city’s affordability, proactive government initiatives, and thriving IT corridor have made it a magnet for businesses expanding their footprint. Delhi NCR also reported a strong 20% growth, fueled by infrastructural developments and increasing demand in Noida and Gurugram. Meanwhile, Bangalore, Pune, and Chennai showed steady, moderate growth, with rental values increasing by 15.8%, 11.1%, and 9.1%, respectively.
A major driver behind this surge is the growing presence of Global Capability Centres (GCCs), tech giants, and BFSI (Banking, Financial Services, and Insurance) firms reinforcing their commitment to India’s office ecosystems. Peush Jain, MD of Commercial Leasing & Advisory at ANAROCK Group, highlights this trend: “GCCs have become the single-biggest transformation driver on India’s office leasing landscape.” Data from Q1 2025 reveals that GCCs leased over 8 million sq. ft., with Delhi NCR accounting for nearly 23% of this demand. Over two years, GCCs have contributed to more than 37% of office leasing across India’s top seven cities, signalling a long-term bullish outlook.
An interesting international dimension emerges as well. The United States, despite its internal business uncertainties, leads foreign office space leasing in India, making up 45% of total leasing. Mumbai’s BFSI sector, heavily influenced by US-based banks, reflects this trend, with American firms occupying 48% of leased spaces in the city’s financial hubs.
Investor confidence in India’s commercial real estate is strengthening, supported by steady rental yield improvements and the resurgence of office space absorption to pre-pandemic levels. Real Estate Investment Trusts (REITs) are gaining traction, helping maintain capital value competitiveness in key markets like Hyderabad and Delhi NCR.
Looking ahead, the Indian commercial real estate market appears resilient and optimistic. The evolving workplace is less about remote work and a reimagined, hybrid approach where quality office environments remain essential. As Peush Jain summarises, “The future of work in India is not remote but reimagined.”
This steady growth across metros and sectors positions India’s office market as a key global business destination, with high-demand flexible and premium office spaces, shaping the country’s economic recovery and long-term corporate strategies.
