Mumbai becomes India’s priciest office market with 28% rent surge, Hyderabad ranks 2nd. Here’s city-wise breakdown

The Mumbai Metropolitan Region (MMR) has emerged as the most expensive commercial real estate market across India. The average rental in the region rose nearly 28 per cent from ₹131 per sq ft in 2022 to ₹168 per sq ft in 2025, according to data analysed by property consulting firm Anarock.

The primary market in MMR, including Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East, continues to remain the most preferred areas by sectors such as finance, IT/ITeS, and startups.

This significant increase in rental value is due to the post-pandemic rebound and soaring demand for premium office spaces in major cities such as MMR, Delhi NCR, Hyderabad and Bengaluru, the report stated.

Hyderabad

Hyderabad witnessed the second-highest growth across major cities in India, where rents grew nearly 24.1 per cent from ₹59 per sq ft in 2022 to ₹72 per sq ft in 2025.

Delhi-NCR

The rental value in Delhi-NCR grew nearly 20 per cent from ₹92 to ₹110 per sq ft in this period. This growth is primarily attributed to infrastructure projects and the growing demand for office space in Noida and Gurugram.

Bengaluru

Meanwhile, office rents in Bengaluru increased 15.8 per cent from ₹82 per sq ft in 2022 to ₹95 per sq ft in 2025. Regions such as Whitefield, Outer Ring Road, and Electronic City still attract global customers.

Other major cities

Likewise, Pune and Chennai experienced moderate rental increases of 11.1 per cent and 9.1 per cent, respectively, reflecting the stable yet regulated growth in their IT/ITES and industrial sectors.

Significant growth in capital value

According to a previous report by Anarock released in March 2025, capital values in the top seven cities rose significantly by 128 per cent between 2021 and 2024, while rental values in many micro markets appreciated less than the overall capital value growth.

In major cities, including Bengaluru, Greater Mumbai, Delhi NCR, and Hyderabad, the average capital values rose higher than rental values between 2021-end and 2024-end.