 "Commercial rentals rise across Indian cities amid global uncertainty")
The commercial real estate rentals across the top Indian cities have shown growth from 2022 to 2025 despite global macroeconomic upheavals and uncertainties, according to a report by Anarock, a real estate services provider.
Of the top six Indian cities, the rentals in the Mumbai Metropolitan Region (MMR) grew by 28 per cent between 2022 and 2025, to Rs 168 per square foot per month. Meanwhile, the rentals in Hyderabad increased by 24.1 per cent to Rs 72 per sq ft per month.
“Notably, the US, which is seeing considerable business policy uncertainty, accounts for 45 per cent of total office space leasing in India, ahead of all other countries. In Mumbai, US-based banks contribute as much as 48 per cent of BFSI leasing. American companies’ appetite for prime Indian grade A office spaces remains undiminished,” said Peush Jain, managing director – commercial leasing and advisory, Anarock Group.
During the same period, the rentals in Delhi NCR rose by 20 per cent to Rs 110 per sq ft per month. The rentals in Bengaluru grew by 15.8 per cent to Rs 95 per sq ft per month, while those in Pune grew by 11.1 per cent to Rs 80 per sq ft per month. The rentals in Chennai increased by 9.1 per cent to Rs 72 per sq ft per month.
The growth is amid businesses’ push for a full-fledged return to office life and a growing demand for premium workspaces, especially in hotspots like MMR, Delhi NCR and Hyderabad.
According to Jain, global capability centres (GCCs) have become the single biggest transformation driver on India’s office leasing landscape. In Q1 2025 alone, GCCs leased 8.35 million sq ft of office space, with Delhi NCR capturing close to 23 per cent of that demand. Over the past two years, the GCCs have accounted for over 37 per cent of all office leasing across the top seven cities.
The report further noted that investor sentiment in the commercial space remains optimistic despite global headwinds. With real estate investment trusts (REITs) gaining traction and office absorption back to pre-pandemic levels, investor sentiment in the commercial space remains optimistic despite global headwinds.
“The future of work in India is not remote but reimagined. The hybrid work model has matured – not as a shift away from offices, but as a strategic blend of physical and flexible spaces. This evolution has ensured a strong leasing pipeline, particularly in tech parks, co-working hubs and special economic zones,” Jain added.