For the first time since 2019, office rental prices across India’s six largest cities have exceeded pre-pandemic levels, according to a report by Colliers India. The report reveals a steady rise in average office rents, reaching Rs 101.3 per square foot in 2024, up from Rs 99.5 per square foot in 2019. This marks a full recovery for the office rental market, which faced a slump during the pandemic before rebounding with record-high leasing activity each year since 2022.

Colliers India notes that demand for Grade A office spaces has driven this V-shaped recovery in leasing activity. At the same time, rental prices have followed a more gradual, U-shaped path, surpassing pre-COVID benchmarks in 2024. “All six major markets have now surpassed their pre-pandemic rental levels,” said Arpit Mehrotra, Managing Director of Office Services at Colliers India. “While rental growth will vary by city, Delhi NCR and Pune are expected to see the largest increases by the end of 2024.”

Among the top cities, Delhi NCR led in rental growth, recording an 8.3% increase compared to 2019, with Pune and Mumbai following at 7.7% and 5.8%, respectively. Hyderabad and Pune were the first to reach pre-pandemic rental rates in 2022, followed by Bengaluru and Chennai in 2023, with Delhi NCR and Mumbai completing the recovery this year. Colliers projects that rental growth in these cities will remain strong, with particular momentum expected in Delhi NCR and Pune.

Since 2019, the demand for Grade A office spaces has accounted for around 264 million square feet of uptake, signalling India’s steady expansion in commercial real estate. Colliers anticipates that demand for office spaces will stabilize at around 60 million square feet annually, given the current strength of the commercial property market. Mehrotra emphasized that India’s commercial real estate outlook remains robust, with expectations of consistent demand, barring any unforeseen economic disruptions.

The report underscores the resilience of India’s office rental market, highlighting a healthy trajectory as companies continue to seek out high-quality, Grade A spaces to support flexible and hybrid work needs. With the major cities achieving a complete recovery, the Indian office space market is set to continue growing, particularly as sectors like IT, BFSI, and flexible workspaces drive demand in an evolving workplace landscape.

This demand and rental growth resurgence reflects India’s strong positioning within the global commercial real estate market. As the market matures, the ongoing recovery across major cities solidifies India’s role as a key destination for office leasing and investment.