Steady growth in commercial office rentals is improving rental yields, particularly in cities like Hyderabad and Delhi NCR, where capital values remain competitive. With REITs gaining traction and office absorption back to pre-pandemic levels, investor sentiment in the commercial space remains optimistic despite global headwinds.
Meanwhile, the Mumbai Metropolitan Region (MMR) has emerged as the most expensive commercial market in India, with rental values soaring 28% - from INR 131 per sq. ft. in 2022 to INR 168 in 2025. Prime micro-markets like Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East continue to attract top-tier demand from finance, IT/ITeS, and startup sectors.
Delhi NCR registered a strong rise from INR 92 to INR 110/sq. ft. (20%) – driven primarily by infrastructure projects and rising demand in Noida and Gurugram.
Hyderabad saw notable growth in office rental values – a 24.1% increase over four years - benefiting from its affordability, proactive government policies, and its thriving IT corridor.
Bangalore, the tech capital saw a 15.8% increase, with Whitefield, ORR, and Electronic City continuing to attract global occupiers.
Pune & Chennai showed only moderate rental growth of 11.1% and 9.1% respectively, mirroring the steady but controlled growth in their IT/ITES and industrial sectors.
Commercial Rental Trends (INR/sq. ft./month)
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“The overall sentiment in India’s commercial real estate (CRE) market remains resilient and optimistic,” says Peush Jain. “The future of work in India is not remote but reimagined. The hybrid work model has matured - not as a shift away from offices, but as a strategic blend of physical and flexible spaces. This evolution has ensured a strong leasing pipeline, particularly in tech parks, co-working hubs, and SEZs.
As demand continues to outpace supply in prime micro-markets and India ramps up its stature as a global outsourcing powerhouse, rental values will continue to rise consistently.
