Mumbai Office Rents Surge, Hyderabad 2nd: City-Wise Breakdown

Office Rents: The Mumbai Metropolitan Region (MMR) has become India’s most expensive commercial real estate market. Real estate consulting firm Anarock analyzed data showing that average rental prices in the area rose by about 28%, climbing from ₹131 per square foot in 2022 to ₹168 per square foot in 2025. Key sectors such as finance, IT/ITeS, and startups continue to drive demand in prime MMR locations like Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East.

Furthermore, following the post-pandemic rebound, office space demand has surged rapidly in major cities including Delhi, Mumbai, Hyderabad, and Bengaluru.

City Wise Breakdown:
1. Office Rents in Hyderabad:
The second-highest growth among India’s main cities was seen in Hyderabad, where rents increased by around 24.1% from ₹59 per square foot in 2022 to ₹72 per square foot in 2025.

2. Delhi-NCR
During this time, the rental price in Delhi-NCR increased by almost 20%, from 92 to 110 rupees per square foot. Infrastructure developments and the rising need for office space in Noida and Gurugram are the main causes of this increase.

3. Bengaluru:
Bengaluru’s office rentals rose 15.8% from ₹82 per square foot in 2022 to ₹95 per square foot in 2025. Global clients continue to be drawn to areas like Whitefield, Outer Ring Road, and Electronic City.

Other Cities:
The steady but controlled expansion in their IT/ITES and industrial sectors is also reflected in the moderate rental increases of 11.1% and 9.1% in Pune and Chennai, respectively.

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Growth in Capital Value:

Anarock, in its March 2025 assessment, highlighted that capital values in the top seven cities surged by 128% between 2021 and 2024. While rental values in many micromarkets did rise, they lagged behind the sharp increase in capital values. Notably, from the end of 2021 to the end of 2024, average capital prices grew faster than rental values in key cities such as Hyderabad, Greater Mumbai, Bengaluru, and Delhi NCR.

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