Rising Office Rents Signal Return to Prime Workspaces in Indian Metros

Office rents in the Mumbai Metropolitan Region grew by 28% over the last two and a half years, driven by demand for prime workspaces. Despite global economic uncertainties, major Indian cities like Delhi-NCR, Hyderabad, and Bengaluru also saw notable rental increases, indicating a strong rebound in commercial real estate.

Office rents in the Mumbai Metropolitan Region (MMR) have surged by 28% over the past two and a half years, according to real estate consultant Anarock. This increase underscores a flourishing demand for premium workspaces, even amidst global economic uncertainty.

The growth trend extends across other major Indian metros, such as Delhi-NCR and Hyderabad, where office rentals rose by 20% and 24.1%, respectively. Anarock indicates that businesses are emphasizing a return to fully-fledged office operations.

In MMR, the average office rent climbed to Rs 168 per square foot from Rs 131 in 2022. Observers note that U.S.-based banks play a significant role in leasing activities. Shesh Rao Paplikar of BHIVE workspaces and Kirthi Chilukuri of Stonecraft Group view this rental increase as a signal of rising business confidence and infrastructural improvements across India.

(With inputs from agencies.)