The Mumbai Metropolitan Region (MMR) has solidified its position as India's most expensive commercial real estate market. According to data analysed by property consulting firm ANAROCK, average rental values in the MMR have seen an appreciation of 28 percent from Rs 131 per sq. ft. in 2022 to Rs 168 per sq. ft. in 2025.
The report said that prime micro-markets within the MMR, such as Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East, continue to be highly sought after, particularly by sectors like finance, IT/ITeS, and startups.
This significant rise is attributed to the post-pandemic rebound and sustained demand for premium office spaces in top hotspots like MMR, Delhi NCR, Hyderabad and Bengaluru, the report said.
Delhi NCR registered a strong rise of 20 percent from Rs 92 to Rs 110 per sq. ft. during the same period. The uptick in rentals was driven primarily by infrastructure projects and rising office space demand in Noida and Gurugram.
Hyderabad saw second second-highest growth with 24.1 percent from Rs 59 per sq. ft. in 2022 to Rs 72 per sq. ft. in 2025. The tech capital, Bengaluru, saw a 15.8 percent increase in office rentals from Rs 82 per sq.ft. in 2022 to Rs 95 per sq. ft. in 2025. Areas like Whitefield, Outer Ring Road, and Electronic City continue to attract global occupiers in Bengaluru, the report said.
Similarly, Pune and Chennai showed only moderate rental growth of 11.1% and 9.1% respectively, mirroring the steady but controlled growth in their IT/ITES and industrial sectors.
Peush Jain, MD - Commercial Leasing and Advisory, ANAROCK Group, said that the US, which is seeing considerable business policy uncertainty, accounts for 45 percent of total office space leasing in India, ahead of all other countries.
“In Mumbai, US-based banks contribute as much as 48 percent of BFSI leasing. American companies’ appetite for prime Indian Grade A office spaces remains undiminished,” he said.
Jain further said that GCCs have become the single-biggest transformation driver on India’s office leasing landscape.
“Our data shows that in Q1 2025 alone, GCCs leased 8.35 million sq. ft., with Delhi NCR capturing close to 23 percent of that demand. Over the past two years, they have accounted for over 37 percent of all office leasing across the top 7 cities, signalling a long-term commitment to the country’s metropolitan business ecosystems,” he added.
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