The India office rental index Q2 2026 report shows continued growth in the second quarter of the year. The latest Commercial Property Rental Index for Offices – Q2 2026, by CRE Matrix in association with IIM Bangalore, tracks rental movements across India’s major office markets. The report covers 10 Tier-1 cities and 46 macro-markets, offering insights into rental trends across Grade A and A+ office properties.
India’s Office Rental Market Shows Steady Momentum
India’s office rental index increased 0.9% quarter-on-quarter in Q2 2026. It also recorded 3.9% year-on-year growth during the quarter. The index’s three-year CAGR stood at 4.4%, while its five-year CAGR reached 4.8%. These figures provide a broad view of rental movement across India’s major office markets.
A Closer Look at India’s Office Rental Market
The report highlights rental movements across established business districts and developing office locations. Some macro-markets recorded stronger growth than their wider city-level averages. Others showed more moderate changes over the same period. The following city-wise overview highlights selected figures from the report. Readers can explore the full report for detailed data across all covered markets.
Delhi
Delhi recorded the highest three-year rental CAGR among the cities covered in the report, at 14.7%. The Delhi CBD recorded a 27.4% year-on-year increase in Q2 2026. South Delhi also registered strong movement, with rents rising 20% year-on-year.
Mumbai
Mumbai recorded a three-year rental CAGR of 10.4%. It was the only city to record rental growth in all 12 quarters covered. The Western Suburbs recorded a 24% year-on-year increase in Q2 2026.
Hyderabad
Hyderabad recorded 12.3% year-on-year rental growth in Q2 2026. Peripheral East recorded a 16.3% increase, while Gachibowli registered 14.7% growth. These figures highlight differences in rental movement across the city’s office districts.
Bengaluru
Bengaluru’s Whitefield macro-market recorded a three-year rental CAGR of 23%. This was a notable long-term growth figure among the locations covered. It highlights the value of examining rental trends at the macro-market level.
Chennai
Chennai’s Northern Suburbs recorded a 45.8% year-on-year rental increase in Q2 2026. This was one of the most notable location-level movements in the report. It adds to the variation seen across India’s office markets.
Gurugram
Gurugram recorded a three-year rental CAGR of 8.5%. This figure reflects rental movement over a longer period. It also provides a point of comparison with other major office markets.
Navi Mumbai
Navi Mumbai North recorded a three-year rental CAGR of 3.7%. The figure offers a location-level view within the wider Mumbai office market. It also highlights differences between office districts in the region.
Thane
Thane City recorded a three-year rental CAGR of 2.9%. Its five-year CAGR stood at 4%. These figures provide a longer-term view of rental movement in Thane.
Noida
Suburban Noida recorded a three-year rental CAGR of 7.0%. This offers a snapshot of rental growth in the region’s office market. It also contributes to the wider comparison across major cities.
What the Rental Trends Reveal Across Cities
The figures show that rental movements differ across India’s major office markets. Delhi recorded the highest three-year city-level CAGR, while Mumbai showed growth in every quarter covered. At the macro-market level, Whitefield and Chennai’s Northern Suburbs recorded notable increases. These differences highlight how rental performance can vary by location and measurement period. Comparing city-level and macro-market figures gives readers a clearer understanding of these patterns.
Rental Growth Reflects Different Market Conditions
India’s office rental index brings together movements across established and developing office locations. The quarterly and annual figures capture shorter-term changes, while CAGR offers a longer-term view. Together, these measures help explain how rental trends have developed across different markets. They also show why individual office locations can move differently from their broader city averages.
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