October 30, 2025: India’s office real estate market continues its upward trajectory, with rentals across the top seven cities rising by 6% in 2025, led by Mumbai and Delhi-NCR, according to a recent Anarock Research report. The study attributes this surge to robust occupier demand, limited new supply, and the growing preference for Grade A and flexible office spaces in well-connected business corridors.
The report notes that vacancy rates have declined to 16.2%, signalling stronger market absorption and sustained confidence among occupiers. India’s commercial real estate sector, the report adds, is undergoing a major transformation driven by improved connectivity, enhanced infrastructure, and the rising demand for modern, flexible workplaces. As companies focus on efficiency, adaptability, and employee experience, premium-grade offices are setting new benchmarks for productivity and long-term growth.
Data from CRE Matrix further highlights that Mumbai saw a 3.6% quarterly surge in office rentals during Q2 2025, followed by Gurugram (3.2%) and Delhi (3%). On an annual basis, Delhi recorded a 16.4% rise—its sharpest increase in five years—fuelled by strong leasing activity from the BFSI and technology sectors. In Mumbai, rentals rose 9.7% year-on-year across key business hubs like Nariman Point, Andheri, and Thane, driven by limited supply and sustained investor confidence.
The Central Business District (CBD) of Mumbai remains India’s most expensive and stable office market, having recorded a 13.7% annual growth over the last three years. Meanwhile, Gurugram’s NH48 corridor, encompassing Cyber City, Udyog Vihar, and Sector 32, registered a 3.2% quarterly and 16% annual increase in rentals.
The growth momentum is particularly visible across Delhi, Noida, and Greater Noida, which continue to evolve as dynamic office hubs in North India.
Source: ET Now
