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Office Rents: Property prices in India are soaring at a cheetah’s pace. Meanwhile, office rents have also seen a significant increase. Data from IIM Bangalore – CRE Matrix shows that office rents in India are increasing at a rate of 3.8 percent annually.
Office Rents: India’s real estate demand is at a high level. Residential sales are booming in the market. People are buying homes. Demand for office space, not just homes, has also increased significantly. According to the latest report, office rents are rising rapidly in the country’s top cities. According to the IIM Bangalore-CRE Matrix Commercial Property Rental Index (CPRI Q2 2025), office rents in India’s top 10 cities have increased by 3.8 percent year-on-year. Cities like Mumbai, Gurugram, and Delhi have seen the largest increase in office rents.
The biggest reasons for this increase are said to be the growing demand for IT and financial services, the end of work-from-home, and a decrease in the number of new projects. The report states that cities like Mumbai, Gurugram, and Delhi have led this growth, while cities like Chennai and Noida have lagged behind.
Why Mumbai Leads
According to the report, Mumbai saw a 3.6% quarterly increase in rents this year. Areas like Nariman Point, Bandra Kurla Complex, Andheri, and Thane saw steady demand. The rise in rents was driven by a decrease in new office projects and the increasing use of investment funds (REITs). Mumbai has a limited number of quality and large offices. Large companies are looking to lease offices here for long periods. This has strengthened Mumbai’s office market. Navi Mumbai saw the highest compounded growth (9%) in three years.
Delhi-NCR Situation
Delhi saw rents rise by more than 16 percent in a year, the highest in five years. Demand for office space has rebounded in key business areas like Connaught Place and Barakhamba Road. A shortage of quality, spacious offices has pushed rents higher. Companies are now expanding their presence in central Delhi, making the city attractive to investors. Meanwhile, office rents in Gurugram, located near Delhi, have also risen sharply.
Areas near NH 48, such as Udyog Vihar, Cyber City, and Sector 32, have seen a growth of approximately 16 percent over the year. Demand from financial services and consulting companies remains strong. Improved roads, metro connections, and new business hubs have made Gurugram the busiest office hub in Delhi-NCR.
Bengaluru
The overall performance of Bengaluru, the country’s tech capital, has been somewhat slower this year, but Whitefield and South Bengaluru have outperformed others. Whitefield saw a growth of approximately 20 percent over the year, the highest in the country. IT companies are now opening offices along the Outer Ring Road and new corridors. Hybrid working styles have increased demand for these locations.
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