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According to real estate consultancy Anarock, office rents have increased significantly over the last two and a half years in major Indian metropolises, especially the Mumbai Metropolitan Region (MMR). Despite global economic uncertainties, companies, especially US-based firms, are driving demand for premium Grade A workspaces. MMR led the growth with a 28% surge in rents, followed by Hyderabad, Delhi-NCR, and Bengaluru. Industry leaders noted that the rebound in rentals reflects India's improving infrastructure, abundant talent pool, and a clear push for a return to physical offices by global corporations.
Office rents in the Mumbai Metropolitan Region (MMR) have witnessed a sharp 28% rise over the past two and a half years, fuelled by robust demand for premium commercial spaces despite global economic headwinds, as per real estate consultancy Anarock. Advertisement
The consultancy noted in a recent report that rental values are showing healthy momentum across India's top metropolitan areas, driven largely by businesses striving to re-establish a full-scale return to office operations.
Peush Jain, Managing Director of Commercial Leasing & Advisory at Anarock Group, pointed out that the United States-despite experiencing significant policy uncertainties-continues to dominate India's office leasing market, contributing 45% of the total leased space, outpacing all other nations. He also highlighted that in Mumbai, US-headquartered banks alone make up 48% of all leasing activity within the BFSI (Banking, Financial Services, and Insurance) sector.
According to Jain, American firms' demand for high-quality Indian Grade A office spaces has remained consistently strong.
Since 2022, a robust post-pandemic recovery has propelled demand for top-tier workspaces, particularly in commercial hubs such as MMR, Delhi-NCR, and Hyderabad. In MMR, average monthly rents have climbed to INR 168 per square foot from INR 131 in 2022. Delhi-NCR, another prime market, has posted a 20% rental growth, with rents rising from INR 92 to INR 110 per square foot.
Hyderabad has emerged as a notable performer with office rental values surging 24.1%, from INR 58 to INR 72 per square foot. Bengaluru followed with a 16% increase, taking average rents to INR 95 from INR 82 per square foot.
Meanwhile, Pune and Chennai demonstrated more modest growth. Rents in Pune rose 11.1% to INR 80 per square foot, while Chennai saw a 9.1% hike to INR 72 per square foot.
Shesh Rao Paplikar, Founder and CEO of BHIVE Workspaces, remarked that the 16% rental jump in Bengaluru underscores the resilience of the commercial property market there, driven primarily by strong demand from the tech industry, Global Capability Centres (GCCs), and co-working operators. He observed that this surge in rentals points to growing confidence in India's talent infrastructure, supported by continuous upgrades and the increasing emphasis on in-office operations.
Kirthi Chilukuri, Founder and Managing Director of Stonecraft Group, commented that the broad-based rental hike across major Indian cities reflects renewed business optimism and a clear pivot toward future-ready office environments. He emphasised that Hyderabad's remarkable 24% rise in rents is a testament to its emergence as a preferred destination for innovation-led enterprises, supported by strong infrastructure and a dynamic workforce.
With modern infrastructure, favourable demographics, and a decisive return-to-office approach, Indian cities are poised to continue attracting major global occupiers seeking quality workspaces. This upswing not only signals a stabilised post-COVID market but also reinforces India's strategic position in the global commercial realty map.
Source - PTI
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