For years, we’ve been hearing cries of despair echoed across Mumbai as the residents grapple with the city being a very expensive city to live in and rental rates nearly nightmarish. While Bangalore has gained a lot of traction in bolstering the real estate market and is considered as the most expensive Indian city for middle class residents, Mumbai continues to reign supreme for property value, rental costs, and now, office real estate. With top global firms headquartered across its bustling financial districts and India’s richest tycoons calling it home, the Mumbai Metropolitan Region (MMR) is the undisputed epicenter of commercial space in India. But it’s not alone. Several other cities are rapidly climbing the charts, including some high-growth Tier-2 destinations. Let’s dive into the top six most expensive Indian cities for office real estate in 2025, starting with the priciest:
1. Mumbai Metropolitan Region (MMR)
As expected, MMR tops the list but you will not believe the property rates in the market. With the average rental rate per sq. ft surging by nearly 28%, prices are touching ₹168 per sq. ft/month, cementing MMR’s position as the costliest city in India for commercial real estate, especially in Bandra-Kurla Complex (BKC) and Nariman Point. These are expensive because they’re home to big banks, foreign companies and luxury commercial towers.
2. Delhi NCR (Noida & Gurugram)
In Delhi-NCR, places like Aerocity and parts of Gurugram (Cyberhub, Golf Course Road) have high office rents, having risen 20% in the past 3 years to ₹110 per sq. ft/ month, with some going higher. Companies such as Global Capability Centers (GCCs) and Multinational Corporations (MNCs) seem to favour these areas because of their proximity to the airport, modern buildings and great connectivity. Key sectors like IT, BFSI and startups are leading this growth, accounting for a significant portion of rental activity. Overall, the region has seen decent growth and increased gross leasing agreements.
3. Bangalore
The IT and startup hub of India is no less dangerous when it comes to outrageous commercial rent rates. With a near 16% increase in average rent rate, prime areas like Outer Ring Road, Whitefield and Electronic City command the market at ₹95 per sq. ft/month. Office demand is massive, over 14 million sq. ft was absorbed in 2024 alone and Bangalore is estimated to lead the commercial market by 2030. However, due to rapid development and limited land availability, there is a gaping disparity, creating a supply-demand mismatch and property prices are skyrocketing.
Also read: Is Samruddhi Expressway going to Boost Real Estate Prices in Mumbai and Nagpur?
4. Hyderabad
Hyderabad is a rising star in commercial real estate where office rents have risen by 24% averaging at nearly 72 per sq. ft/month, with ultra-premium buildings touching ₹90 per sq. ft. Strong government support, top-notch infrastructure, and major IT expansions by firms like Amazon, Facebook and Microsoft are pushing this growth. The city is attracting significant investment and is experiencing strong leasing activity, particularly in prime business hubs like Madhapur, Raidurg, HITEC city and Gachibowli.
5. Pune
Pune’s commercial real estate market is currently experiencing a period of both growth and challenges. While Pune remains a strong player in India’s commercial real estate landscape, with average office rents hovering around ₹82 per sq. ft/month, with key hubs like Hinjewadi and Kharadi attracting consistent demand from IT, auto, and manufacturing sectors. However, it is facing headwinds like high vacancy rates and rental corrections due to increased supply. Vacancy is the lowest among major cities, and with 13 million sq. ft of planned new supply, the city is quietly becoming a top office destination.
6. Chennai
Chennai may have the lowest average rents on this list of ₹68 per sq. ft/month with a moderate growth rate of 9%, but it’s growing steadily. Regions like Old Mahabalipuram Road (OMR) and Guindy receive consistent leasing from IT firms, electronics manufacturers and industrial players. While it seems promising, as a metropolitan city, the growth has been slightly slower due to infrastructure lags, when compared to Bengaluru or Hyderabad.
As India continues to urbanise and attract global capital, these six cities are leading the office real estate boom. Whether driven by tech demand, global outsourcing or sheer commercial clout, their rising office rents tell a story of opportunity, but also fierce competition. For investors, tenants and developers alike, understanding where rents are rising fastest and why is key to staying ahead in India’s dynamic commercial landscape.
Written by Teertha Ravi
