Hyderabad Real Estate: Office Rents Increase by 24 Percent in 2025

Hyderabad has emerged as one of the fastest growing commercial office space markets in India, with rents rising by 24.1% over the past three years. The average rent for office spaces in the city increased from ₹59 per sq ft in 2022 to ₹72 per sq ft in 2025, making it the second highest growth among major Indian cities.

This sharp rise is largely due to growing demand from the IT, ITeS, financial, and startup sectors, which continue to expand operations in key business areas across Hyderabad. The city’s modern infrastructure, talent pool, and business friendly ecosystem have made it a preferred destination for office space.

Topping the list is the Mumbai Metropolitan Region (MMR), where average commercial rentals rose by 28% from ₹131 per sq ft in 2022 to ₹168 per sq ft in 2025. Popular locations such as Bandra Kurla Complex (BKC), Andheri East, and Lower Parel remain hotspots for corporate leases.

Delhi NCR saw a rental increase of 20%, with rates moving from ₹92 to ₹110 per sq ft, mainly due to ongoing infrastructure developments and growing interest in Noida and Gurugram. In Bengaluru, office rentals grew by 15.8%, reaching ₹95 per sq ft. Areas like Whitefield, Outer Ring Road, and Electronic City continue to draw interest from global firms.

Pune and Chennai posted more moderate growth at 11.1% and 9.1% respectively, reflecting steady demand in their IT and industrial sectors.

In recent years, capital values in top cities have jumped sharply, rising over 128% between 2021 and 2024, while rental rates have seen relatively slower growth in many local markets. Still, Hyderabad continues to stand out as a key location for companies looking to expand.