Workspace demand pushes rents up across major Indian cities

India’s top cities are seeing a sharp rise in office rents as companies drive demand for premium workspaces. Despite global uncertainties, strong interest especially from US firms is fueling growth in commercial real estate, led by Mumbai, Delhi-NCR, and Hyderabad.

Office rents have gone up sharply across India’s major cities, especially in the Mumbai Metropolitan Region (MMR), as companies seek high-quality office spaces despite global economic uncertainty. According to real estate consultancy Anarock, average office rents in MMR rose by 28% in the last two and a half years. This increase reflects strong demand for premium workspaces as more businesses push for a full return to office-based work.

The report highlights that the United States, despite facing policy uncertainty at home, leads office leasing activity in India. US-based companies currently account for 45% of India’s total office space leasing—more than any other country. In Mumbai, American banks alone make up 48% of all leasing activity in the BFSI (Banking, Financial Services, and Insurance) segment.

Peush Jain, Managing Director of Commercial Leasing & Advisory at Anarock Group, noted that American companies continue to show strong interest in Grade A office spaces in India, especially in MMR.

Since 2022, a post-pandemic recovery has triggered consistent demand for quality workspaces. MMR, Delhi-NCR, and Hyderabad have seen some of the most significant rental growth. In MMR, average office rent increased from ₹131 per square foot in 2022 to ₹168 per square foot in 2025—a 28% jump.

Delhi-NCR also saw a healthy 20% increase in office rents, rising from ₹92 to ₹110 per square foot. Hyderabad followed closely with a 24.1% rise, with office rents going up from ₹58 to ₹72 per square foot.

In Bengaluru, office rent rose 16%, reaching ₹95 per square foot from ₹82 in 2022. Pune and Chennai, however, recorded more moderate growth. Office rent in Pune increased by 11.1% to ₹80 per square foot, while Chennai saw a 9.1% rise, bringing rents to ₹72 per square foot.

Shesh Rao Paplikar, Founder and CEO of BHIVE Workspaces, commented that Bengaluru’s 16% rental growth shows a strong comeback in the commercial real estate market. This growth is mainly driven by high demand from technology firms, Global Capability Centers (GCCs), and flexible workspace providers.

He added that the rising rents reflect growing confidence in India’s talent base, recent improvements in infrastructure, and the increasing number of companies asking employees to return to the office.

Kirthi Chilukuri, Founder and Managing Director of Stonecraft Group, echoed this view. He said the rising office rents in major Indian cities point to renewed business confidence. He also noted a clear shift toward modern, future-ready workspaces.

Chilukuri highlighted Hyderabad’s performance as especially notable. With a 24% increase in rents, the city has quickly become a preferred destination for technology and innovation-focused companies. This growth is backed by strong infrastructure and a vibrant talent pool.

Overall, the data indicates a steady and confident recovery in India’s office real estate market. The demand for premium workspaces continues to grow, fueled by international interest and a shift in how businesses view the future of work.