Crossing the Rs 100 per sq. ft per month mark for prime office rentals in Delhi-NCR and Bengaluru is more than a headline number; it signals a clear shift in how India’s commercial real estate market is evolving. In most micro-markets, Grade A properties have been attracting attention, with tenants opting for consolidation into good spaces instead of expansion without purpose. The Global Capability Centres (GCCs), technology, BFSI (Banking, Financial Services, and Insurance), and co-working spaces remain the key sectors fuelling the demand for office space, and their inclination leans toward premium-grade properties.
Visible shift of corporates into these locations
Delhi-NCR stands out in this cycle, with office rentals recording a sharp 15 per cent year-on-year growth – the highest among India’s leading cities. In Gurugram, corridors like Dwarka Expressway and Golf Course Extension Road are seeing steady traction, driven by improving connectivity and a strong corporate base. Noida’s Expressway belt, Sector 62, and emerging mixed-use hubs are also attracting occupiers looking for scale and a more integrated ecosystem. What ties it all together is a combination of infrastructure upgrades, a visible shift of corporates into these locations, and the depth of the surrounding business environment.
According to Sandeep Chhillar, Founder & Chairman, Landmark Group, in Gurugram, this Rs 100 per sq ft mark feels like a natural progression.
“Over the past few years, occupiers have become far more selective about where they want to be. It’s no longer about taking up space; it’s about taking up the right space. Premium micro-markets in Gurugram like Golf Course Extension Road are seeing this play out clearly, where demand is holding strong even at higher rentals. For us, the takeaway is simple: quality supply will be rewarded with great premium as we are experiencing with our upcoming Grade A office projects,” Chhillar said.
Mumbai ahead of this curve
Bengaluru is witnessing strong GCC-led demand and a tight supply pipeline in core business districts are keeping rentals firm and steadily pushing them upward. While Mumbai has been ahead of this curve, sustaining Rs 100-plus rentals for some time now. In many ways, it serves as a benchmark for market maturity, and what we are seeing in Delhi-NCR and Bengaluru is a gradual move towards that same level of depth and pricing.
Occupiers today are far more intentional about the kind of spaces they choose, and that’s reflected in their willingness to pay a premium. ESG-compliant buildings, stronger amenities, and locations that are closer to talent pools are no longer optional. The increase in leasing seems to be driven more by its benefits in terms of value rather than by speculative motives.
Salil Kumar, Director-Marketing and Business Management, CRC Group, said, “In Noida, especially along the Noida Expressway, there is a clear shift in how occupiers are thinking. Earlier, cost was often the deciding factor. Today, the focus has moved to long-term value: better infrastructure, stronger connectivity, and a more complete ecosystem. The inauguration of the Noida International Airport is only going to accelerate this further, acting as a strong catalyst for Grade A office growth in the region. Global businesses and GCCs are already establishing their presence here, drawn by the scale and future readiness of the market. In many ways, the report simply mirrors what’s playing out on the ground: Grade A buildings in the right locations are getting absorbed quickly, and rentals are moving up as a natural outcome.”
Besides, another layer to this shift is the growing strength of mixed-use developments, where office spaces are seamlessly integrated with retail and lifestyle offerings. These environments are holding rental values more firmly because they offer something beyond just workspace; they create a more complete, engaging ecosystem for employees.
“When Grade A workspaces are complemented by strong retail and lifestyle elements, the perception of that location changes meaningfully. For occupiers, it’s not just about the office anymore—it’s about the overall experience they can offer their teams. That naturally supports a willingness to pay a premium. We’re already seeing this reflected in retail spaces where leasing activity stays consistent even as rentals firm up. In that sense, crossing the Rs. 100 per sq ft mark is not just an office story—it points to a broader shift towards more well-rounded, experience-led developments,” Ajendra Singh, Vice-President, Sales and Marketing, Spectrum@Metro, concluded.
