India’s Office Rental Market in 2025 stays resilient as businesses expand in major cities. The Commercial Property Rental Index (CPRI) Q4 Report from IIMB-CRE Matrix offers data-driven insights into Grade A office rental changes across key areas.
For instance, the Q4 2025 study shows steady growth in India’s Office Rental Market in 2025. It highlights strong momentum in select cities and emerging micro-markets shaping commercial real estate.
The IIMB-CRE Matrix, from the Indian Institute of Management Bangalore and CRE Matrix, boosts transparency and data insights in India’s commercial real estate market.
India’s Office Rental Market Shows Steady Growth
The most recent research shows stable and consistent rental growth in India’s top office markets.
The key national indicators are:
- 3.0% year-over-year rental growth
- CAGR: 5.2% over three years
- CAGR: 4.2% over five years
- 4.4% ten-year CAGR
This steady performance shows strong demand. It comes from key sectors like technology, financial services, consulting, and global capability centers (GCCs).
How Do Major Indian Cities Perform in the Office Rental Market?
Mumbai
Mumbai leads office rental growth with a 10% three-year CAGR and 13.4% YoY rise, driven by strong demand and limited Grade A/A+ supply in prime business districts.
Gurugram
Gurugram’s office market shows strong momentum with 12.9% YoY growth and 8.7% three-year CAGR, supported by MNC leasing and growth along Sohna Road.
Bengaluru
Bengaluru records the highest CPRI score of 207, with tech firms and GCCs driving demand in Whitefield and Outer Ring Road office corridors.
Hyderabad
Hyderabad’s office rentals remain stable with 0.6% YoY growth and 3.9% three-year CAGR, led by demand in HITEC City and Gachibowli.
Pune
Pune’s Grade A/A+ office market grew 0.9% YoY with a 5.2% three-year CAGR, supported by strong IT demand in Hinjewadi.
Chennai
Chennai saw rentals drop 17.5% year on year. It also had a 3.2% fall over three years. However, quarterly growth in areas like the Northern Suburbs shows local demand bouncing back.
Noida
Noida’s rental index fell 4.4% year on year. But it kept a 4.1% growth rate over three years. Leasing along the Greater Noida Expressway still drives its commercial growth.
Navi Mumbai
Navi Mumbai shows mixed trends. Rentals dropped 3.4% year on year. Yet it gained 5.7% over three years. In fact, the city had the biggest rank jump among major markets.
Delhi
Delhi office rentals rose 11.2% YoY with a 6.8% three-year CAGR, driven by demand in established CBD locations.
Thane
Thane saw 9.1% YoY rental growth and 5.5% three-year CAGR, supported by infrastructure upgrades and competitive rents near Mumbai.
Mumbai Leads Office Rental Growth
Among India’s major office markets, Mumbai has emerged as the fastest-growing city for office rentals. For instance, the report shows its highest 3-year CAGR of 10.0%. This highlights strong, consistent growth across its office corridors. Moreover, Mumbai led quarter-on-quarter growth in Q4 2025, with rents up 2.8%. As a result, this reflects robust occupier demand and steady leasing in prime locations.
Gurugram Continues to Show Strong Momentum
For example, Gurugram ranks among India’s most dynamic office markets. This stems from multinational corporations, global capability centers, and a growing financial and consulting ecosystem. Moreover, the report shows 12.9% year-on-year rental growth. As such, it stands as one of the country’s top performers. In turn, this signals strong leasing demand across the city.
Bengaluru remains India’s largest office market
While Mumbai leads in rental growth, Bengaluru continues to dominate the total market. The city had the highest CPRI index rating of 207, indicating the size and depth of its office market.
Bengaluru’s leadership is bolstered by its status as India’s technological hub, with a high concentration of global capability centers, technology businesses, and startups that continue to fuel office demand.
Emerging High-Growth Office Micromarkets
The research stresses high-performing office micromarkets in India’s cities. They grow more important.
Among them, Whitefield in Bengaluru had the top rental rise. It grew 18.7% over three years. Tech companies and new business clusters drive strong demand.
Meanwhile, Chennai’s Northern Suburbs led macro-markets this quarter. Rentals jumped 9.7% quarter on quarter.
Thus, these corridors speed up. Reasons include better infrastructure, fresh developments, and growing corporate presence.
What Does This Mean for India’s Commercial Real Estate Market?
Q4 2025 CPRI data shows India’s office rentals stay stable and grow. Mumbai leads in growth. Meanwhile, Gurugram keeps a fast pace. Bengaluru remains the largest office hub.
At the same time, new micro-markets in big cities drive the future demand. As businesses expand in India, demand for top Grade A spaces in key areas will stay strong.
Elevate your decisions in real estate as a developer or broker with CRE Matrix‘s data-driven insights. Book a demo now!