Mumbai, May 23, 2025: Despite worldwide macroeconomic upheavals and uncertainties, India’s business actual estate market remains on a notable upswing. According to the modern ANAROCK records, rental values display healthy boom across primary metros as businesses push harder for a full-fledged go back to workplace lifestyles.
Despite the global economic uncertainties and financial turmoil, India's commercial real estate sector is emerging firmly. There is a steady increase in demand for office space in the major metros of the country, which has also increased in office fares.
Especially the increasing presence of the Global Capability Center (GCC) has become a major cause of this growth. Despite several months of stagnation after the Kovid-19 epidemic, now the demand for office space has reached a new level and this trend is increasing rapidly.
Notably, the United States, which is seeing enormous business policy uncertainty, accounts for 45 according to cent of general workplace area leasing in India—beforehand of all other countries,” says Peush Jain, MD.
The Commercial Leasing and Advisory, ANAROCK Group. In Mumbai, US-primarily based banks make a contribution as a lot as forty eight in step with cent of BFSI leasing. American businesses’ urge for food for high Indian Grade A workplace areas stays undiminished.
Post-COVID Demand Driving Commercial Rentals
After a brief pandemic-precipitated pause, India’s commercial actual property market has long gone from quick healing to a brand new boom phase. As hybrid fashions deliver way to extra traditional, established in-office operations, companies are doubling down on their presence in prime business districts.
The end result has been a surge in demand for grade A workplace areas, pushed via a mixture of Global Capability Centres (GCCs), tech giants and BFSI leaders. GCCs have come to be the single-biggest transformation driving force on India’s workplace leasing panorama,” says Jain.
Our statistics indicates that during Q1 2025 by myself, GCCs leased a stunning eight.35 mn squareft with Delhi-NCR taking pictures near 23 according to cent of that call for. Over the beyond two years, they have accounted for over 37 in step with cent of all workplace leasing across the pinnacle seven towns, signalling a protracted-term commitment to the country’s metropolitan business ecosystems.”
Meanwhile, MMR has emerged as the most luxurious industrial marketplace in India with apartment values soaring 28 in line with cent—from INR 131 according to squareft in 2022 to INR 168 in 2025. Prime micro-markets like Bandra-Kurla Complex (BKC), Lower Parel and Andheri East keep to draw pinnacle-tier call for from finance, IT/ITeS and start-up sectors.
Maximum Increase in Office Fares in Mumbai
According to the latest Encarock Group data, the Mumbai Metropolitan Region (MMR) has increased by a tremendous increase of 28 per cent in office fares between 2022 and 2025. The office fare in Mumbai in 2022 was an average of Rs 131 per square feet per month.
Which has increased to Rs 168 per square foot in 2025. The demand for office space from major commercial areas of Mumbai such as Bandra-Kurla Complex (BKC), Lower Parel, and Andheri East, IT/ITES and startup sector demand for office space.
Demand Increased in Other Cities Including Delhi-NCR
There has also been a significant increase in office fares in Delhi-NCR region. The office fare between 2022 and 2025 has increased by 20 percent, which has increased from Rs 92 to Rs 110 per month per month. The reason for the increased demand in Delhi-NCR is mainly rapid development and better infrastructure in Noida and Gurugram.
Apart from this, the fare in Bengaluru has increased by 15.8 percent, Pune 11.1 percent, and Chennai 9.1 percent. In Hyderabad too, the office fare has increased from Rs 58 to Rs 72 per square feet per month. The demand for office space is increasing due to the expansion of technical companies and startups in these cities.
Important role of Global Capability Center (GCC)
GCC has emerged as the biggest transformational element in India's office real estate market. In the first quarter of 2025, GCC rented 83.5 lakh square feet of office space alone, with Delhi-NCR's share of about 23 percent.
In the last two years, more than 37 percent of the office leasing in the major seven cities of the country has been taken by the GCC. It is an indication that global companies are committed to increasing their business operations in India.
Rental Yields and Investors Trust
The continuous increase in commercial office fares has improved the rental yield, especially in markets such as Delhi-NCR and Hyderabad. Due to competition of capital values, these cities remain attractive to investors. After the epidemic, the demand for office space has returned to a higher level, due to which the spirit of investors in the commercial sector remains positive.
Increase in Demand From Hybrid Work Model
Companies are no longer moving away from the office but are adopting hybrid work models, which balances both the physical office and distance work. This model has strengthened the demand for office space in Tech Park, Co-Working Space and Special Economic Areas (SEZ).
As the demand in major micro-markets is moving beyond the supply supply, India's global outsourcing strength is also increasing, which is likely to increase office fares.
Commercial Real Estate Market Emerging Strongly
India's commercial real estate market is emerging firmly after the epidemic. Major cities like Mumbai, Delhi-NCR, Hyderabad and Bengaluru are developing rapidly in the region.
This sector is further strengthened by the increasing interest of the Global Capability Center and large multinational companies. In the coming years, the demand and fare of office space is expected to continue to continue, which will prove to be a profitable deal for both investors and business.
