Where Office rents are rising fastest: Delhi sees 16% jump, Mumbai tops

Data from IIM Bangalore-CRE Matrix shows India's office rentals rising 3.8% year-on-year, with demand from financial and tech hubs fueling steady growth across top cities.

Office rentals in India’s top 10 cities grew 3.8% year-on-year, led by Mumbai, Gurugram, and Delhi, while strong leasing in IT and financial corridors helped stabilize vacancy levels, according to the latest IIM Bangalore–CRE Matrix Commercial Property Rental Index (CPRI Q2 2025).

 

Mumbai topped the growth charts with a 3.6% quarterly surge — the steepest among all cities — followed by Gurugram (3.2%) and Delhi (3.0%).

 

On an annual basis, Delhi emerged as the strongest performer, clocking a 16.4% year-on-year jump, its highest in over five years.

 

Nationwide, the Grade A office segment continues to show resilience, buoyed by return-to-office momentum, stable occupier demand, and limited new supply.

 

 

India’s Top Office Markets in Q2 2025 

Mumbai, Gurugram and Delhi lead India’s Grade A Office Rentals Surge: IIMB-CRE Matrix Commercial Property Rental Index-Q2 2025

 

Navi Mumbai posted the highest 3-year compounded growth (9%), while Delhi outperformed all metros on annual rental expansion.

 

Micro-Market Movers: Whitefield, CBD Mumbai, and NH-48 Gurugram

 

At the submarket level, data reveals a more nuanced story. 

Whitefield (Bengaluru) led the country with 19.7% annual rental growth, followed by Chennai’s Northern Suburbs (19.3%).

CBD Mumbai continues to be India’s most expensive and stable office district, posting a 13.7% 3-year CAGR, while NH-48 Gurugram and Hinjewadi Pune recorded double-digit rent escalations.

 

“The Indian office market has defied global slowdown trends,” the report said.

 

“High-quality supply, steady leasing from BFSI and technology occupiers, and infrastructure-led expansion have kept rents firm in prime corridors.”

 

City-by-City Breakdown

 

Mumbai:

The country’s most active market saw consistent growth across all micro-markets — from Nariman Point to Andheri and Thane.

Limited new supply and rising REIT absorption drove rents up 9.7% YoY, with Central and Western suburbs clocking 11–12% CAGR.

 

 Delhi & Gurugram:

Delhi’s Central Business District (CBD) saw double-digit growth amid renewed leasing interest in Connaught Place and Barakhamba Road. 

Gurugram’s NH-48 Prime corridor (Udyog Vihar, Sector 32, Cyber City) saw 16% YoY rent escalation, supported by sustained demand from financial services and consulting firms.

 

 Bengaluru:

While overall city-level growth was muted at 0.5% QoQ, Whitefield and South Bengaluru outperformed, with 13% and 7.9% 3-year CAGR respectively. The trend reflects the city’s shift toward outer-ring IT corridors under hybrid work models.

 

 Pune & Navi Mumbai:

Hinjewadi (Pune) registered 10.2% CAGR and nearly 17% YoY growth, driven by IT expansions. 

North Navi Mumbai (Airoli, Ghansoli, Rabale) remained a standout with the fastest long-term rent growth (13% 3-year CAGR) nationwide, boosted by data center and industrial leasing.

 

 Pan-India Snapshot

 

Average Grade A office rental growth: 3.8% YoY, 0.8% QoQ

 

3-Year CAGR: 6.1%

 

5-Year CAGR: 3.6%

 

10-Year CAGR: 4.4%

 

Top Performing Markets: Mumbai, Delhi, Gurugram, Pune, Navi Mumbai

 

Emerging Corridors: Whitefield, NH-48 Gurugram, Hinjewadi, Airoli

 

The index attributes the steady rise to limited new supply, flight-to-quality demand, and stable macro fundamentals in India’s office sector.

 

Challengers: Chennai and Noida Lag

 

Not all markets kept pace.

Chennai’s rentals fell 2.3% QoQ and 3.7% YoY, while Noida dipped 4.4% QoQ despite a positive annual trend. Both cities face supply overhang and slower leasing in peripheral zones.

 

What the Index Tells Investors

 

Mumbai, Gurugram, Navi Mumbai Lead 2026 Play

 

With vacancy levels under 15% in key corridors, analysts expect rents to rise another 6–8% in 2026, led by premium Grade A offices.

 

For investors, CBD Mumbai, Whitefield, NH-48 Gurugram, and Navi Mumbai North remain the top picks for resilient yield and long-term appreciation. 

Key points: 

Mumbai tops India’s city ranking with the highest quarterly rental growth of 3.6% QoQ, cementing its position as the country’s most consistent office market. 

Delhi leads in annual growth, with rents soaring 16.4% YoY, reflecting the premium commanded by scarce high quality office assets in the city. 

Gurugram also contributed in the rental surge, increasing by 3.2% on a QoQ basis in Q2 CY 2025 and 8.1% over the last 12 months. 

Navi Mumbai records the fastest three-year CAGR of 9.0%, making it India’s most resilient post-COVID office market. 

Chennai’s northern suburbs emerge as the breakout performer, registering a 9.8% QoQ surge – the highest across India this quarter.

  Whitefield, Bengaluru, grew by 8% over the previous quarter and continued to dominate with the highest rental index value (243) of any macro-market in India. 

Over the past five years, CBD Mumbai posted an exceptional 9.6% CAGR, reinforcing the strength of India’s financial capital’s core business district.