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India's Grade A office market maintained positive rental momentum during the first quarter of CY2026, according to the sixth edition of the IIM Bangalore–CRE Matrix Commercial Property Rental Index (CPRI) report. Based on registered lease transactions, the index recorded a 2.9% year-on-year increase across Tier-1 office markets, with a three-year compound annual growth rate (CAGR) of 4.8%. Bengaluru retained the highest CPRI score among major office markets, Mumbai recorded the strongest three-year rental appreciation, while Delhi posted the fastest quarter-on-quarter rental growth, highlighting varied growth trends across India's commercial real estate markets.
India's Grade A office rental market continued to witness steady growth during the first quarter of CY2026, with the Tier-1 Commercial Property Rental Index (CPRI) registering a 2.9% year-on-year increase, according to the sixth edition of the IIM Bangalore–CRE Matrix Commercial Property Rental Index report.
Developed jointly by CRE Matrix and the Indian Institute of Management Bangalore (IIM Bangalore), the index is based on registered lease transactions and tracks rental movements across India's Tier-1 Grade A office markets. The report serves as a benchmark for occupiers, investors, developers and policymakers monitoring trends in the commercial office sector.
The report showed that the Tier-1 office rental market maintained a positive growth trajectory, recording a three-year compound annual growth rate (CAGR) of 4.8%. The findings indicate continued pricing resilience across key office markets despite changing occupier requirements and evolving workplace strategies.
Mumbai recorded the strongest long-term rental appreciation among the major office markets, delivering a three-year CAGR of 10%. The report attributed this performance to sustained occupier demand and continued leasing activity across the city's Grade A office stock.
Delhi emerged as the fastest-growing office market during the quarter, with the Commercial Property Rental Index rising 7.4% quarter-on-quarter. The increase indicates strengthening rental momentum across the National Capital Region's office market during the January–March 2026 period.
Bengaluru retained its position as India's strongest office market, recording the highest CPRI score of 212 among Tier-1 cities. According to the report, the city's performance continued to be supported by its established technology ecosystem and sustained demand from office occupiers.
The Commercial Property Rental Index is based on registered lease transaction data, providing a transaction-led assessment of rental movements rather than relying on quoted market values. This methodology enables the index to reflect prevailing rental trends across institutional Grade A office assets in India's leading commercial markets.
The latest findings indicate that India's office sector continues to demonstrate resilience, with rental growth being supported by sustained occupier activity across established business districts. While individual cities displayed varying growth patterns during the quarter, the overall Tier-1 office market remained on a positive rental trajectory, reinforcing the continued strength of India's commercial real estate sector.
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