NEW DELHI: Bengaluru recorded a 26 per cent rise in average office rentals over the past five years, reaching Rs 93 per square foot per month in 2024. The spike comes as a result of rising demand for office space across India’s major property markets, according to real estate consultancy Anarock.
The consultancy agency released rental trends data across seven key cities: Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, and Pune. Bengaluru, among all the cities studied, saw the highest growth, with rents rising from Rs 74 per sq ft in 2019 to Rs 93 per sq ft in 2024.
Office rental trends across cities
The south Indian city of Hyderabad followed closely, with a 25 per cent increase in office rents to Rs 67 per sq ft from Rs 56 per sq ft in 2019. Chennai, also following an upward momentum, saw a 20 per cent jump, reaching Rs 75 per sq ft from Rs 60 per sq ft.
In Mumbai, rentals in the metropolitan region (MMR) rose by 13 per cent, climbing to Rs 140 per sq ft from Rs 124 per sq ft in 2019. Pune saw a 19 per cent increase to Rs 81 per sq ft, while Kolkata’s office rent grew to Rs 62 per sq ft from Rs 52 per sq ft over the corresponding period.
Delhi-NCR recorded the slowest growth among the seven cities, with a 10 per cent rise, taking the average office rent to Rs 86 per sq ft from Rs 78 per sq ft in 2019.
Peush Jain, managing director of Commercial Leasing and Advisory at Anarock, attributed the strong rental growth in Bengaluru, Hyderabad, and Chennai to their growing IT infrastructure and skilled workforce.
“As India continues to be one of the fastest growing economies, global corporates will look to establish their GCCs for expansion. The start-up ecosystem has again gained momentum and they too will be major drivers of office demand alongside the BFSI sector,” he said.
Mumbai based Anarock expanded into the office leasing business in 2024, adding to its existing services in housing brokerage, capital market transactions, and leasing of retail, industrial, and warehousing spaces.
