Office Rentals Surge 6% Across India’s Top Cities in 2025; Mumbai and Delhi-NCR Dominate Growth Momentum
India’s office rental market is witnessing strong upward momentum in 2025, with rentals rising by 6% across the top seven cities, led by Mumbai and Delhi-NCR. The steady demand for premium office spaces, coupled with limited new supply, has created a landlord-favorable market. According to Anarock Research, vacancy rates have dropped to 16.2%, indicating robust market absorption and sustained occupier confidence.
Mumbai continues to be India’s most expensive and resilient office market. The city recorded a 9.7% year-on-year rise in rentals across key business districts such as Nariman Point, Andheri, and Thane. The Central Business District (CBD) remains the most in-demand location, witnessing an impressive 13.7% annual growth over the past three years. A blend of limited supply, high-quality demand, and strong investor interest has reinforced Mumbai’s dominance in the commercial real estate landscape.
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Delhi-NCR, particularly Gurugram, has emerged as another high-growth region. Office rentals in Gurugram’s NH48 corridor, home to Cyber City, Udyog Vihar, and Sector 32, climbed 3.2% quarter-on-quarter and a striking 16% year-on-year. Delhi itself outshone all others on an annual basis, registering a 16.4% jump, the highest in five years. The growth is being driven by BFSI and technology occupiers, along with major infrastructure-led expansions.
Other metro cities such as Bengaluru, Pune, Hyderabad, Chennai, and Kolkata are also experiencing healthy leasing activity, supported by the increasing demand for Grade A and flexible office spaces. Improved connectivity, urban infrastructure, and integrated business ecosystems have further enhanced the attractiveness of these commercial hubs for both occupiers and investors.
Industry experts note that this rental surge signals a maturing office real estate cycle in India, where quality, flexibility, and sustainability are emerging as key determinants of value. With the hybrid work trend stabilizing and multinational firms expanding their footprint, India’s office market is expected to maintain its upward growth trajectory through 2026, reinforcing confidence in the country’s commercial property sector.
