India Defies Global Slump: Office Rentals Continue Upward Trend in 2025
New Delhi, April 10, 2025 — At a time when global office rental markets are facing stagnation or decline, India is standing strong with continued growth in office leasing and rental rates. According to a recent report by Vestian, India recorded its highest-ever office leasing volume of 70.7 million sq. ft. in 2024, representing a robust 16% annual growth.
This impressive performance positions India as a notable outlier compared to global cities such as New York, Seattle, Boston, Hong Kong, and Shanghai, all of which experienced rental declines over the past five years. In contrast, Indian cities maintained a consistent upward trend — thanks to affordable sub-dollar rentals, rapid infrastructure development, and growing demand from the IT sector and Global Capability Centers (GCCs).
📈 Global vs. Indian Office Rental Trends (2023–2024)
| City | 2023 (USD/sq ft/month) | 2024 (USD/sq ft/month) | % Change YoY | 5-Year Change |
|---|---|---|---|---|
| New York | 7.6 | 7.5 | -5.1% | -1.3% |
| Hong Kong | 6.2 | 5.9 | -35.7% | -6.0% |
| Miami | 4.8 | 5.1 | +53.3% | +7.3% |
| London | 7.9 | 8.6 | +31.0% | +8.6% |
| Mumbai | 1.5 | 1.6 | +6.2% | +6.7% |
| Delhi | 0.8 | 0.9 | +9.8% | +8.2% |
| Bengaluru | 1.0 | 1.1 | +12.4% | +4.7% |
| Hyderabad | 0.8 | 0.8 | +13.9% | +4.4% |
Note: INR 86 = USD 1
Source: Compiled by Vestian Research
🚀 Why India’s Office Rental Market is Booming
Vestian CEO Shrinivas Rao attributes India’s growth to a combination of key factors:
- Favorable demographics and a large talent pool of skilled professionals
- An influx of foreign investments and the rapid expansion of global businesses
- Strategic infrastructure projects boosting connectivity
- Cost-effective leasing compared to major global hubs
- Rising demand from sectors like technology, finance, and startups
Rao notes that global rental declines are driven by changes in workspace utilization and technological disruptions like generative AI, which have prompted many businesses to downsize or restructure their office needs. In contrast, India’s affordable rates and economic optimism make it a hotspot for expansion.
🏢 High-Demand Locations & Premium Rentals
Prime commercial districts like Mumbai’s BKC and Delhi’s Connaught Place are commanding rentals of USD 3–4 per sq. ft. per month — reflecting the premium attached to these sought-after locations.
Overall, Indian cities saw rental growth between 3.8% and 8.2% in 2024 alone, fueled by:
- GCC expansion
- Urbanization
- Robust job creation
- A growing consumer market
India’s positioning as a cost-efficient, talent-rich hub ensures its steady trajectory in the global office space market.
🔍 About Vestian
Vestian is a global workplace solutions provider, focused on delivering tailored commercial real estate strategies. Headquartered in Chicago, it operates across the US, India, China, UK, Sri Lanka, and the Middle East, offering services such as:
- Investment & Consultancy
- Transaction Advisory
- Project & Retail Solutions
- Integrated Facility Management
Vestian is the only global workplace firm certified across four ISO standards:
ISO 9001, ISO 14001, ISO 45001, and ISO 37001.
🖊️ Author Credit
This article is based on original research and statements released by Vestian. For media inquiries, contact:
Afrin Shaikh
Associate Director, Slough PR
📧 afrin@sloughpr.com /
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