Posted on by Abhishek Kiran Gupta

India’s Office Rents Are Rising Fast — Here’s What the Data Really Shows

India’s Grade A office markets are entering a decisive upcycle. According to the IIM Bangalore–CRE Matrix Commercial Property Rental Index (CPRI Q2 2025), the latest commercial rental trends reveal not just rising rents, but a clear reshaping of where value, resilience, and pricing power truly lie across cities and micro-markets.

Drawing from recent industry reports and rental indices, here’s a consolidated view of how India’s top office markets performed — and what it means for occupiers, investors, and developers.

Mumbai: The Undisputed Anchor of India’s Office Market

Mumbai continues to lead India’s office rental landscape with unmatched consistency.

  • The city recorded the highest quarterly rental growth at 3.6% QoQ, topping all Indian cities.
  • Over a longer horizon, CBD Mumbai delivered an exceptional 9.6% CAGR over the past five years, underlining the enduring strength of the country’s financial core.
  • Navi Mumbai emerged as the most resilient post-COVID office market, posting the fastest 3-year CAGR of 9.0% nationwide — driven by improving infrastructure, affordability, and sustained occupier demand.

Together, these trends reaffirm Mumbai’s dual strength: premium pricing in established CBDs and accelerating momentum in peripheral growth corridors.

Delhi-NCR: Scarcity Drives Sharp Annual Growth

While Mumbai leads quarter-on-quarter, Delhi dominates the annual charts.

  • Office rents in Delhi surged 16.4% YoY, the highest annual increase among Indian cities.
  • This sharp rise reflects the scarcity of high-quality Grade A supply and strong demand for premium, well-located office assets.
  • Gurugram led NCR’s momentum, with rents rising 3.2% QoQ in Q2 CY 2025 and 8.1% YoY. Strong corporate leasing and limited new Grade A supply in prime sectors continue to tighten the market.

The data clearly shows that in NCR, quality and location are commanding a premium like never before.

Bengaluru & Chennai: Micro-Markets Take the Spotlight

Southern India’s office markets are seeing growth that is increasingly micro-market driven.

  • Whitefield, Bengaluru, grew by 8% QoQ, while continuing to dominate India with the highest rental index value of 243 — the strongest pricing benchmark of any macro-market nationwide.
  • In Chennai, the Northern Suburbs emerged as the breakout performer. They recorded a 9.8% QoQ surge, the highest quarterly growth across India in this period.

These trends highlight a shift where specific business districts, not entire cities, are setting the pace for rental appreciation.

What This Means for the Office Market

The latest rental data points to three clear themes shaping India’s office sector:

  1. Consistency beats volatility – Mumbai’s steady growth reinforces its role as the most reliable office market in the country.
  2. Scarcity fuels pricing power – Delhi’s YoY surge proves that limited Grade A supply translates directly into higher rents.
  3. Micro-markets are the new battleground – From Whitefield to Chennai’s Northern Suburbs, localized demand-supply dynamics are now driving outsized gains.

The Bottom Line

India’s office rental growth is no longer uniform — it’s precise, data-driven, and location-specific. Markets that combine infrastructure readiness, supply discipline, and sustained occupier demand are pulling ahead.

As the gap widens between prime and peripheral assets, granular rental intelligence is becoming critical for decision-makers navigating leasing, investment, and portfolio strategy in India’s evolving office market.

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