Commercial Rentals in India Rise Up to 28% — Mumbai, Hyderabad, Delhi NCR Show Strong Demand

According to a recent report by Anarock, commercial real estate rentals across India’s top cities have continued to rise steadily from 2022 to 2025, despite global macroeconomic instability and policy uncertainties.

MMR and Hyderabad Lead the Pack

The Mumbai Metropolitan Region (MMR) saw the sharpest increase among major cities, with rentals reportedly rising by 28% during the three-year period to reach Rs 168 per sq ft per month. Hyderabad followed with a 24.1% growth, where rents were recorded at Rs 72 per sq ft per month.

American Demand Remains Strong

Peush Jain, managing director of commercial leasing and advisory at Anarock Group, indicated that despite prevailing uncertainty in US business policies, American companies have remained the most significant drivers of office space demand in India. The US is said to contribute 45% of all office space leasing in India. In MMR specifically, US banks were found to be responsible for nearly 48% of leasing activity in the BFSI sector, highlighting continued international interest in India’s Grade A office spaces.

Steady Growth Across Other Major Markets

During the same period, other key cities also posted notable rental increases:

• Delhi NCR: Up 20% to Rs 110 per sq ft/month
• Bengaluru: Up 15.8% to Rs 95 per sq ft/month
• Pune: Up 11.1% to Rs 80 per sq ft/month
• Chennai: Up 9.1% to Rs 72 per sq ft/month

Premium Office Demand Drives Momentum

Industry watchers suggested that the uptrend in rentals has been fuelled by two key forces: a corporate shift back to office-first operations and the rising preference for high-quality workspaces, particularly in high-demand zones like MMR, Delhi NCR, and Hyderabad.

Disclaimer: This news report is based on data provided by Anarock and reflects market trends and expert opinions as of 2025. Readers are advised to independently verify any financial or investment decisions.