Hyderabad Real Estate Market Rises on Tech Demand, Office Rentals Surge 24%
These hubs continue to attract companies from the finance, IT/ITeS, and startup sectors, contributing to the surge in rental values.
The Mumbai Metropolitan Region (MMR) has emerged as the most expensive commercial real estate market in India, according to a report by property consultancy ANAROCK. The average rental value in MMR rose by 28% from ₹131 per sq. ft. in 2022 to ₹168 per sq. ft. in 2025.
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BKC, Lower Parel, Andheri East Among Top Micro-Markets
The report highlighted that prime micro-markets such as Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East remain in high demand. These hubs continue to attract companies from the finance, IT/ITeS, and startup sectors, contributing to the surge in rental values.
Also Read: Fresh COVID-19 Case in Hyderabad: Doctor Infected in Kukatpally Area
Post-Pandemic Demand Fuels Nationwide Rental Growth
The rise in commercial real estate prices has been attributed to a robust post-pandemic recovery and growing demand for premium office spaces in top cities like MMR, Delhi NCR, Hyderabad, and Bengaluru.
Hyderabad and Delhi NCR Show Strong Rental Growth
Hyderabad recorded the second-highest increase at 24.1%, with average rentals rising from ₹59 per sq. ft. in 2022 to ₹72 per sq. ft. in 2025. Delhi NCR saw a 20% increase, driven by infrastructure growth and heightened demand in Noida and Gurugram, where rentals climbed from ₹92 to ₹110 per sq. ft.
Bengaluru’s IT Corridor Continues to Attract Global Firms
Bengaluru’s office market witnessed a 15.8% rental hike from ₹82 per sq. ft. to ₹95 per sq. ft. Key areas like Whitefield, Outer Ring Road, and Electronic City remain attractive to global occupiers, especially in the IT sector.
Pune and Chennai Post Moderate Gains
Pune and Chennai displayed modest growth, with rental increases of 11.1% and 9.1%, respectively. The gains are consistent with the steady pace of expansion in the IT/ITES and industrial sectors in both cities.
US Companies Lead Indian Office Leasing Surge
Peush Jain, MD – Commercial Leasing and Advisory at ANAROCK Group, noted that US firms contribute to 45% of total office leasing in India. In Mumbai alone, US-based banks account for 48% of BFSI leasing activity. “American companies’ appetite for Indian Grade A office spaces remains strong,” Jain added.
GCCs Transforming India’s Leasing Landscape
Global Capability Centres (GCCs) have emerged as key players in India’s office space demand. According to Jain, GCCs leased 8.35 million sq. ft. in Q1 2025 alone, with Delhi NCR capturing nearly 23% of the demand. Over the last two years, GCCs accounted for more than 37% of leasing across the top 7 cities, indicating sustained interest in India’s metropolitan hubs.
