Office Rentals Surge 6% in 2025: Mumbai and Delhi-NCR Lead India’s Commercial Real Estate Boom
India’s office rental market continues its upward trajectory, with a 6% rise across the top seven cities in 2025, driven by surging demand, limited new supply, and expanding commercial zones. According to recent market data, Mumbai and Delhi-NCR have emerged as the frontrunners, reflecting India’s shifting corporate landscape and the growing appeal of premium office spaces that promote flexibility and employee well-being.
Anarock Research highlights that vacancy rates dropped to 16.2%, signaling robust leasing activity and healthy absorption levels across major metros. The surge is largely attributed to demand from BFSI, IT, and co-working operators looking for modern, future-ready infrastructure. Well-connected business corridors with integrated ecosystems are now the preferred choice for enterprises, reshaping the office leasing trends in India’s key markets.
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In Mumbai, rentals rose by 9.7% year-on-year, led by key commercial zones like Nariman Point, Andheri, and Thane. The city’s Central Business District (CBD) continues to command the highest office rents in the country, maintaining a steady 13.7% annual growth over the past three years. The limited availability of new Grade A spaces has further fueled competition, making Mumbai a stronghold for institutional investors and multinational occupiers.
Meanwhile, Delhi-NCR maintained its growth momentum, with Gurugram’s NH48 corridor—home to Cyber City, Udyog Vihar, and Sector 32—recording a 3.2% quarterly and 16% yearly jump in rentals. Delhi itself saw an impressive 16.4% year-on-year rise, marking the sharpest increase in five years. Strategic infrastructure development, coupled with sustained leasing from global and domestic firms, continues to strengthen NCR’s position as a commercial powerhouse.
Experts believe that India’s office real estate sector is entering a new phase of expansion, supported by improved connectivity, hybrid work models, and a preference for premium, flexible spaces. With occupier confidence rising and investment inflows strengthening, the outlook for 2026 remains optimistic, pointing toward continued rental appreciation and robust demand in major business hubs nationwide.
