Mumbai has emerged as India’s most expensive commercial office market, with rentals up 28% since 2022. ANAROCK reports rising demand driven by U.S.-based firms and Global Capability Centres (GCCs). Key cities like Delhi NCR, Hyderabad, and Bengaluru also saw strong growth, highlighting continued momentum in India’s premium office space sector.
Mumbai has officially become India’s costliest commercial office market, with rental rates climbing sharply amid a surge in demand for top-grade spaces. A recent report by ANAROCK Property Consultants reveals that average office rents in the Mumbai Metropolitan Region (MMR) jumped 28% from ₹131 per sq. ft. in 2022 to ₹168 per sq. ft. in 2025.
The steep rise in Mumbai’s rental values reflects a broader trend across India’s major urban hubs, fueled by continued interest from multinational firms and the rebound of key sectors. “In Mumbai, US-based banks contribute as much as 48 per cent of BFSI leasing,” said Peush Jain, MD – Commercial Leasing and Advisory at ANAROCK Group. “American companies’ appetite for prime Indian Grade A office spaces remains undiminished.”
High-demand micro-markets like Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East remain hotbeds for commercial activity. The city’s premium commercial hubs attract tenants from finance, technology, and startup sectors, keeping the leasing momentum high.
Delhi NCR also witnessed substantial growth, with rentals rising 20% from ₹92 to ₹110 per sq. ft., driven by new infrastructure projects and demand for Grade A offices in Noida and Gurugram. Hyderabad followed closely, recording a 24.1% increase, while Bengaluru saw a 15.8% rise, supported by strong occupier interest in tech corridors like Whitefield and Outer Ring Road.
Meanwhile, Pune and Chennai posted more moderate rental increases of 11.1% and 9.1%, respectively, reflecting a steady but cautious expansion in their commercial property markets.
Global Capability Centres (GCCs) are pivotal in reshaping the leasing landscape. “Our data shows that in Q1 2025 alone, GCCs leased 8.35 million sq. ft., with Delhi NCR capturing close to 23 per cent of that demand,” Jain noted. “Over the past two years, they have accounted for over 37 per cent of all office leasing across the top 7 cities.”
ANAROCK’s findings highlight the impact of global economic shifts on Indian real estate. The U.S., despite facing business policy uncertainties, remains the most significant contributor to India’s office space leasing, accounting for 45% of total leasing volume.
As India’s metros continue to attract large-scale investment from global occupiers, the commercial office market appears poised for further growth. With cities like Mumbai and Delhi NCR leading the charge and tech hubs like Hyderabad and Bengaluru gaining momentum, the future of India’s flexible and premium office space market looks increasingly dynamic.
