{"id":3579,"date":"2026-06-27T13:32:00","date_gmt":"2026-06-27T08:02:00","guid":{"rendered":"https:\/\/www.crematrix.com\/blog\/?p=3579"},"modified":"2026-06-30T13:38:58","modified_gmt":"2026-06-30T08:08:58","slug":"indias-office-rental-market-maintained-positive-momentum-in-q1-cy26","status":"publish","type":"post","link":"https:\/\/www.crematrix.com\/blog\/indias-office-rental-market-maintained-positive-momentum-in-q1-cy26\/","title":{"rendered":"India&#8217;s Office Rental Market Maintained Positive Momentum in Q1 CY&#8217;26"},"content":{"rendered":"\n<p>India&#8217;s Commercial Property Rental Index (CPRI) for Grade A and A+ office spaces continued to grow in Q1 CY&#8217;26. The <a href=\"https:\/\/www.crematrix.com\/research\/report-details\/296\/iimb-cre-matrix-commercial-property-rental-index-for-offices-q1-2026\"><em>IIMB-CRE Matrix Commercial Property Rental Index for Offices (Q1 2026)<\/em><\/a> tracks effective office rents across India&#8217;s top 10 office markets and provides a detailed view of the latest rental trends in the commercial real estate sector. .<\/p>\n\n\n\n<p>The report covers more than 90% of India&#8217;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&#8217;s Grade A Office Market.<\/p>\n\n\n\n<h2><strong>Key Highlights from the Q1 CY&#8217;26 Report<\/strong><\/h2>\n\n\n\n<ul><li>Pan-India Office Rental Index: +1.1% QoQ and +2.9% YoY.<\/li><li>3-Year CAGR: 4.8% across Tier-1 cities.<\/li><li>Delhi recorded the highest quarterly growth at 7.4% QoQ.<\/li><li>Delhi and Gurugram posted the strongest annual growth at 15.9% YoY.<\/li><li>Mumbai delivered the highest 3-Year CAGR at 10.0%.<\/li><li>Bengaluru had the highest Rental Index value among cities at 212.<\/li><li>Northern Suburbs, Chennai was the fastest-growing macro-market with 15.1% QoQ and 45.4% YoY growth.<\/li><li>Whitefield, Bengaluru recorded one of the strongest long-term performances with a 20.9% 3-Year CAGR.<\/li><\/ul>\n\n\n\n<h2><strong>India&#8217;s Office Rental Market in Q1 CY&#8217;26<\/strong><\/h2>\n\n\n\n<p>The India Office Rental Index remained firmly in positive territory in Q1 CY&#8217;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&#8217;s premium office market.<\/p>\n\n\n\n<p>This performance suggests that the Office Market India continues to benefit from steady occupier demand, especially in established business districts and emerging commercial corridors.<\/p>\n\n\n\n<h2><strong>Top Performing Office Markets<\/strong><\/h2>\n\n\n\n<p>India&#8217;s office rental performance in Q1 CY&#8217;26 varied across markets, with several cities recording strong rental appreciation supported by high-performing macro-markets. Here&#8217;s a look at the office markets that stood out during the quarter.<\/p>\n\n\n\n<h3><strong>Delhi emerged as the strongest quarterly performer<\/strong><\/h3>\n\n\n\n<p>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.<\/p>\n\n\n\n<h3><strong>Hyderabad and Gurugram maintained strong momentum<\/strong><\/h3>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>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&#8217;s overall rental momentum<\/p>\n\n\n\n<h3><strong>Bengaluru remained India&#8217;s strongest office market by index value<\/strong><\/h3>\n\n\n\n<p>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&#8217;s largest Grade A office market.<\/p>\n\n\n\n<p>Its performance was supported by Whitefield, one of India&#8217;s strongest office corridors, which recorded a 20.9% 3-Year CAGR and remained among the country&#8217;s best-performing macro-markets.<\/p>\n\n\n\n<h3><strong>Mumbai led long-term rental growth<\/strong><\/h3>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<h3><strong>Chennai emerged as a high-growth office market<\/strong><\/h3>\n\n\n\n<p>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&#8217;26.<\/p>\n\n\n\n<p>This made it the best-performing macro-market in the entire report.<br><\/p>\n\n\n\n<h3><strong>Pune, Noida, Navi Mumbai and Thane remained resilient<\/strong><\/h3>\n\n\n\n<p>Pune continued to post stable rental growth, with Hinjewadi and SBD-Pune both reaching a CPRI value of 200, making them the city&#8217;s strongest office markets.<\/p>\n\n\n\n<p>In Noida, Suburban Noida remained the leading office corridor with a CPRI value of 114 and a 6.5% 3-Year CAGR. Navi Mumbai \u2013 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.<\/p>\n\n\n\n<h2><strong>Key Market Trends Shaping India&#8217;s Office Sector<\/strong><\/h2>\n\n\n\n<p>Several themes stood out across the report.<\/p>\n\n\n\n<p>First, premium office markets continued to attract stronger rental growth than older CBD locations in many cities.<\/p>\n\n\n\n<p>Second, emerging business corridors such as Whitefield, NH-48 Prime, Northern Suburbs (Chennai), and Peripheral East (Hyderabad) delivered some of the strongest growth numbers.<\/p>\n\n\n\n<p>Third, Mumbai and Gurugram showed remarkable consistency, with both cities recording positive rental growth across all 12 quarters covered in the report&#8217;s quarterly comparison.<\/p>\n\n\n\n<p>Finally, the report&#8217;s focus on effective rent rather than headline rent provides a more accurate view of actual market pricing in India&#8217;s commercial real estate sector.<\/p>\n\n\n\n<h2><strong>What the Q1 CY&#8217;26 Data Reveals<\/strong><\/h2>\n\n\n\n<p>The Q1 CY&#8217;26 Commercial Property Rental Index points to a commercial office market that remains healthy and increasingly driven by high-quality Grade A\/A+ assets.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>At the macro-market level, Northern Suburbs in Chennai, Whitefield in Bengaluru, and NH-48 Prime in Gurugram emerged as standout growth corridors.<\/p>\n\n\n\n<p>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&#8217;s leading business districts.<\/p>\n\n\n\n<p>Overall, the Q1 CY&#8217;26 report suggests that India&#8217;s Grade A Office Market continues to evolve, with rental growth becoming increasingly concentrated in well-performing commercial corridors across the country.<\/p>\n\n\n\n<p><br>Elevate your decisions in real estate as a developer or broker with CRE Matrix\u2019s data-driven insights.&nbsp;<a href=\"https:\/\/www.crematrix.com\/#schedule_demo\">Book a demo now<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>India&#8217;s Commercial Property Rental Index (CPRI) for Grade A and A+ office spaces continued to grow in Q1 CY&#8217;26. The IIMB-CRE Matrix Commercial Property Rental Index for Offices (Q1 2026)&hellip;<\/p>\n","protected":false},"author":1,"featured_media":3582,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[185],"tags":[5,6,13,4,81],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v16.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>India Commercial Property Rental Index Q1 CY&#039;26: Office Market Trends<\/title>\n<meta name=\"description\" content=\"Read the India Commercial Property Rental Index to explore the latest office rental trends across India&#039;s leading commercial office markets.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.crematrix.com\/blog\/indias-office-rental-market-maintained-positive-momentum-in-q1-cy26\/\" \/>\n<meta property=\"og:locale\" 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