Commercial Rents Soar in India: Mumbai Most Expensive, Hyderabad Ranks Second Here’s city-wise breakdown
The Mumbai Metropolitan Region (MMR) has emerged as the most expensive commercial real estate market in India, with average rentals soaring from ₹131 per sq ft in 2022 to ₹168 per sq ft in 2025 — a 28% increase, according to data by Anarock Property Consultants.
Mumbai: The Mumbai Metropolitan Region (MMR) has emerged as the most expensive commercial real estate market in India, with average rentals soaring from ₹131 per sq ft in 2022 to ₹168 per sq ft in 2025 — a 28% increase, according to data by Anarock Property Consultants.
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The surge is driven by strong demand for premium office spaces in the post-pandemic era, especially in prime micro-markets like Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East, which continue to be hubs for finance, IT/ITeS, and startups.
Hyderabad Ranks Second in Commercial Rental Growth
Hyderabad recorded the second-highest rental growth among major Indian cities. Average commercial rents in the city rose by 24.1%, from ₹59 per sq ft in 2022 to ₹72 per sq ft in 2025. The city remains a strong contender in the office leasing market, particularly for tech companies and co-working players.
Delhi-NCR Rents Grow by 20%, Fueled by Infrastructure Boom
The Delhi-NCR region, including key areas like Gurugram and Noida, experienced a 20% growth in office space rentals, increasing from ₹92 to ₹110 per sq ft between 2022 and 2025. This growth is largely attributed to major infrastructure upgrades and increased commercial activity in suburban business districts.
Bengaluru Commercial Rents Increase by 15.8%
India’s tech capital Bengaluru saw a steady 15.8% increase in average office rents, rising from ₹82 per sq ft in 2022 to ₹95 per sq ft in 2025. Prime locations like Whitefield, Outer Ring Road, and Electronic City remain hotspots for global corporations and tech giants.
Pune and Chennai Show Moderate Growth in Office Rentals
Other key cities like Pune and Chennai witnessed moderate rental growth, with increases of 11.1% and 9.1% respectively. These markets continue to reflect a stable commercial environment, especially within the IT/ITES and industrial sectors.
Capital Values in Top Cities Surge by 128% (2021–2024)
While rental values have grown steadily, capital values in India’s top seven cities — including Mumbai, Delhi NCR, Bengaluru, and Hyderabad — have skyrocketed by 128% from 2021 to 2024, as per a previous Anarock report. However, rental growth has not kept pace, particularly in certain micro-markets.
