India’s Commercial Property Rental Index (CPRI) for Grade A and A+ office spaces continued to grow in Q1 CY’26. The IIMB-CRE Matrix Commercial Property Rental Index for Offices (Q1 2026) tracks effective office rents across India’s top 10 office markets and provides a detailed view of the latest rental trends in the commercial real estate sector. .
The report covers more than 90% of India’s Grade A/A+ office inventory across Bengaluru, Hyderabad, Mumbai, Gurugram, Pune, Chennai, Noida, Navi Mumbai, Delhi, and Thane. It also includes insights from 46 macro-markets, making it one of the most comprehensive indicators of India’s Grade A Office Market.
Key Highlights from the Q1 CY’26 Report
- Pan-India Office Rental Index: +1.1% QoQ and +2.9% YoY.
- 3-Year CAGR: 4.8% across Tier-1 cities.
- Delhi recorded the highest quarterly growth at 7.4% QoQ.
- Delhi and Gurugram posted the strongest annual growth at 15.9% YoY.
- Mumbai delivered the highest 3-Year CAGR at 10.0%.
- Bengaluru had the highest Rental Index value among cities at 212.
- Northern Suburbs, Chennai was the fastest-growing macro-market with 15.1% QoQ and 45.4% YoY growth.
- Whitefield, Bengaluru recorded one of the strongest long-term performances with a 20.9% 3-Year CAGR.
India’s Office Rental Market in Q1 CY’26
The India Office Rental Index remained firmly in positive territory in Q1 CY’26. The Pan-India CPRI for Grade A/A+ offices rose 1.1% quarter-on-quarter and 2.9% year-on-year. The index also reported a 4.8% 3-Year CAGR and a 4.4% 5-Year CAGR, indicating sustained growth in India’s premium office market.
This performance suggests that the Office Market India continues to benefit from steady occupier demand, especially in established business districts and emerging commercial corridors.
Top Performing Office Markets
India’s office rental performance in Q1 CY’26 varied across markets, with several cities recording strong rental appreciation supported by high-performing macro-markets. Here’s a look at the office markets that stood out during the quarter.
Delhi emerged as the strongest quarterly performer
Delhi recorded the highest QoQ growth of 7.4%, taking its Rental Index value to 132. The city also posted 15.9% YoY growth and a 9.4% 3-Year CAGR, making it one of the strongest performers in the report.
Hyderabad and Gurugram maintained strong momentum
Hyderabad ranked second in quarterly growth with 7.2% QoQ, while Gurugram recorded 4.2% QoQ growth. Both cities continued to witness healthy rental appreciation across their prime office corridors.
In Hyderabad, Peripheral East recorded 12.1% YoY growth, while Gachibowli reached a CPRI value of 203 with 9.5% YoY growth. Hitec City and Genome Valley also posted positive rental movement, reflecting broad-based demand across the city.
In Gurugram, NH-48 Prime emerged as the strongest-performing macro-market with a 16.9% 3-Year CAGR, while Sohna Road recorded the highest 29.0% YoY rental growth. These corridors continued to support the city’s overall rental momentum
Bengaluru remained India’s strongest office market by index value
Although its quarterly growth was lower than Delhi and Hyderabad, Bengaluru continued to hold the highest CPRI value of 212. The city also reported 9.4% YoY growth and a 5.1% 3-Year CAGR, reinforcing its position as India’s largest Grade A office market.
Its performance was supported by Whitefield, one of India’s strongest office corridors, which recorded a 20.9% 3-Year CAGR and remained among the country’s best-performing macro-markets.
Mumbai led long-term rental growth
Mumbai recorded 2.0% QoQ growth and 13.0% YoY growth. The city also delivered the highest 3-Year CAGR of 10.0% among Tier-1 office markets, reflecting sustained rental appreciation.
Its key office corridors also maintained strong momentum. Western Suburbs recorded 24.0% YoY growth with a 13.7% 3-Year CAGR, while Eastern Suburbs posted 23.1% YoY growth and a 12.1% 3-Year CAGR. Central Mumbai also continued to strengthen with 16.0% YoY growth, highlighting broad-based rental growth across the city.
Chennai emerged as a high-growth office market
Chennai continued to witness strong rental growth, led by its Northern Suburbs. The macro-market recorded the highest 15.1% QoQ growth and 45.4% YoY growth in the report, along with a 20.9% 3-Year CAGR, making it the best-performing office corridor in Q1 CY’26.
This made it the best-performing macro-market in the entire report.
Pune, Noida, Navi Mumbai and Thane remained resilient
Pune continued to post stable rental growth, with Hinjewadi and SBD-Pune both reaching a CPRI value of 200, making them the city’s strongest office markets.
In Noida, Suburban Noida remained the leading office corridor with a CPRI value of 114 and a 6.5% 3-Year CAGR. Navi Mumbai – North outperformed the South market with a 6.7% 3-Year CAGR, while Thane City recorded a CPRI value of 162, reflecting steady rental performance.
Key Market Trends Shaping India’s Office Sector
Several themes stood out across the report.
First, premium office markets continued to attract stronger rental growth than older CBD locations in many cities.
Second, emerging business corridors such as Whitefield, NH-48 Prime, Northern Suburbs (Chennai), and Peripheral East (Hyderabad) delivered some of the strongest growth numbers.
Third, Mumbai and Gurugram showed remarkable consistency, with both cities recording positive rental growth across all 12 quarters covered in the report’s quarterly comparison.
Finally, the report’s focus on effective rent rather than headline rent provides a more accurate view of actual market pricing in India’s commercial real estate sector.
What the Q1 CY’26 Data Reveals
The Q1 CY’26 Commercial Property Rental Index points to a commercial office market that remains healthy and increasingly driven by high-quality Grade A/A+ assets.
Delhi led quarterly growth, Hyderabad maintained strong momentum, Gurugram continued to strengthen, Bengaluru retained the highest market scale, and Mumbai delivered the strongest long-term rental appreciation.
At the macro-market level, Northern Suburbs in Chennai, Whitefield in Bengaluru, and NH-48 Prime in Gurugram emerged as standout growth corridors.
The report helps occupiers identify markets where rental pressure is building. It also enables landlords and developers to spot locations with sustained pricing power. Meanwhile, investors get a clearer view of the long-term potential of high-quality office assets in India’s leading business districts.
Overall, the Q1 CY’26 report suggests that India’s Grade A Office Market continues to evolve, with rental growth becoming increasingly concentrated in well-performing commercial corridors across the country.
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