October 25, 2025: India’s commercial office market continues to show strength, with Grade A and A+ office rents rising 3.8% year-on-year in Q2 2025, according to the IIMB–CRE Matrix Commercial Property Rental Index (CPRI). The report identifies Mumbai, Delhi, and Gurugram as the key drivers of this growth, while Chennai, Navi Mumbai, and Bengaluru also recorded solid gains.
Jointly developed by the Indian Institute of Management Bangalore (IIMB) and data analytics firm CRE Matrix, the index tracks real rental movements across ten major office markets, covering more than 90% of India’s institutional-grade inventory. Unlike conventional indices, the IIMB–CRE Index measures effective rents, factoring in concessions such as rent-free periods and security deposits, to capture what tenants actually pay.
“We had taken some additional time this quarter to tighten our data definitions, so our index continues to remain robust in a dynamic market like India,” said Prof. Venkatesh Panchapagesan, Chairperson of the Real Estate Research Initiative (RERI) at IIM Bangalore. “The fact that our index is less likely to be gamed makes it the most accurate representation of the commercial office rental market in India.”
Mumbai recorded a quarterly rental growth of 3.6%, with its Central Business District maintaining a five-year CAGR of 9.6%. Delhi led in annual growth with a 16.4% rise, while Gurugram saw quarterly and annual gains of 3.2% and 8.1%, respectively.
Chennai’s northern suburbs posted the highest quarterly increase at 9.8%, and Navi Mumbai achieved a three-year CAGR of 9.0%. Bengaluru’s Whitefield submarket grew 8% this quarter, reaching the highest rental index value in India.
According to Abhishek Kiran Gupta, CEO and Co-founder of CRE Matrix, “The IIMB–CRE Matrix is globally the only index that cuts through distortions to show real rent trends based on actual registered transactions in the office real estate segment.”
Source: Realty Plus
