Indian Economy News

Office rent rises 28% in the Mumbai Metropolitan Region (MMR), 24% in Hyderabad, and 20% in Delhi-NCR in past two and a half years: Anarock

Office rents in the Mumbai Metropolitan Region (MMR) have surged by 28% over the past two and a half years, driven by strong demand for prime workspaces despite global economic uncertainties, according to real estate consultant Anarock. The report highlights robust rental growth across major Indian metros as businesses push for a full return to office environments. Despite considerable business policy uncertainties, the United States (US) accounts for 45% of total office space leasing in India, leading all other countries. In Mumbai, US-based banks contribute 48% of leasing within the banking, financial services, and insurance (BFSI) sector. Average monthly office rents in MMR have increased to Rs. 168 (US$ 1.97) per square foot from Rs. 131 (US$ 1.54) 2022. Delhi-National Capital Region (NCR) recorded a 20% rise to Rs. 110 (US$ 1.29) per square foot. Hyderabad’s rents grew 24.1% to Rs. 72 (US$ 0.85) per square foot. Bengaluru saw a 16% increase to Rs. 95 (US$ 1.12) per square foot. In contrast, Pune and Chennai experienced more moderate growth of 11.1% and 9.1%, with rents at Rs. 80 (US$ 0.94) and Rs. 72 (US$ 0.85) per square foot, respectively.
Industry experts attribute this rental growth to rising confidence in India’s talent pools, infrastructure improvements, and return-to-office policies. Founder & chief executive officer (CEO) of BHIVE Workspaces, Mr. Shesh Rao Paplikar, noted Bengaluru’s 16% increase reflects strong demand from technology firms, Global Capability Centres (GCCs), and flexible workspace providers, signalling a resilient commercial real estate market. Meanwhile, Founder & Managing Director of Stonecraft Group, Mr. Kirthi Chilukuri, emphasised that the rental surge across major cities indicates renewed business confidence and a shift towards future-ready workspaces. In particular, Hyderabad’s 24% rental growth underscores its evolution into a key hub for technology and innovation-driven enterprises, supported by robust infrastructure and a dynamic talent base.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.