India Office Rental Market Size, Share, and COVID-19 Impact Analysis, By Office Type (Traditional Office Spaces, Co-working Spaces, Serviced Offices, Business Centers, and Others), By Lease Duration (Short-term Rentals, Medium-term Rentals, and Long-term Rentals), By End-User Industry (Technology & IT, Financial Services, Healthcare & Pharmaceuticals, Legal & Professional Services, Startups & SMEs, Creative & Media, and Others), and Indian Office Rental Market Insights, Industry Trend, Forecasts to 2035

Indian Office Rental Market Insights Forecasts to 2035

• The Market Size is Expected to Grow at a CAGR of around 5.14% from 2025 to 2035
• The Indian Office Rental Market Size is Expected to Reach a significant share by 2035

According to a research report published by Spherical Insights & Consulting, the Indian Office Rental market is anticipated to hold a significant share by 2035, growing at a CAGR of 5.14% from 2025 to 2035. The Indian Office Rental Market is fueled by economic development, evolving work models, and expanding demand beyond metros. Government support and rising infrastructure in smaller cities further strengthen their future potential.

Market Overview

The office rental market refers to the Indian commercial real estate market, which consists of renting office space to companies and institutions. It includes a range of office types in various cities and business districts, from co-working spaces to standard leased spaces and serviced offices. This market serves the increasing need for adaptable, scalable, and well-located workspaces in India, which is being fueled by urbanization, economic expansion, and the growing corporate and startup ecosystems.

The rapid urbanization, a flourishing startup ecosystem, and rising demand for flexible workplaces are driving huge prospects in the Indian office rental market. Traditional corporate offices, co-working spaces, and serviced offices for IT firms, startups, and multinational corporations are some of the main uses. Flexible lease periods, hybrid work arrangements, and tech-enabled smart workplaces are becoming more and more popular, according to trends. Furthermore, the industry is growing outside of major metro areas like Delhi, Bangalore, and Mumbai as Tier 2 and Tier 3 cities emerge as new centers due to increased infrastructure and reasonably priced real estate.

Report Coverage

This research report categorizes the market for Indian office rental market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Indian office rental market. Recent market developments and competitive strategies such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Indian office rental market.

Driving Factors

The fast economic progress, rising foreign direct investment, and the growth of the startup and IT industries. The market is expanding due to the rising demand for co-working spaces and flexible workspaces, which is being driven by shifting work cultures and hybrid work models. Additionally, as businesses look for affordable renting options outside of typical metro areas, urbanization and infrastructural development in Tier 2 and Tier 3 cities create new office centers. The sector's growth is further supported by government initiatives that facilitate commercial transactions.

Restraining Factors

The rising costs of real estate and a shortage of first-rate office space in major cities. Vacancy risks might result from shifting policies regarding remote employment and economic uncertainty that affect demand. Furthermore, legislative complexity and infrastructure deficiencies, particularly in developing cities, could impede market expansion. Growth in some markets is also hampered by growing operating expenses and competition from remote or home offices.

Market Segmentation

The Indian office rental market share is classified into office type, lease duration, and end-user industry.

• The traditional office spaces segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period.

The Indian Office Rental market is segmented by office type into traditional office spaces, co-working spaces, serviced offices, business centers, and others. Among these, the traditional office spaces segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. The growth is driven by the consistency in long-term leasing and demand from big corporations. But the fastest-growing markets are co-working and flexible spaces, which are being driven by cost-conscious companies, hybrid work methods, and startup cultures.

• The long-term rentals segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Indian office rental market is segmented by lease duration into short-term rentals, medium-term rentals, and long-term rentals. Among these, the long-term rentals segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segmental growth is due to the they are the preferred option for big, reliable companies looking for operational stability, customization, and cost effectiveness. Additionally, these leases support developers' desires for steady income and stable assets.

• The technology and IT segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Indian office rental market is segmented by end-user industry into technology & it, financial services, healthcare & pharmaceuticals, legal & professional services, startups & SMEs, creative & media, and others. Among these, the technology and It segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segmental growth is due to the persistent demand from domestic and international tech firms. Because of their well-established IT ecosystems, skill pool, and affordable prices, cities like Bengaluru, Hyderabad, and Pune continue to be important hubs. This industry is the main driver of office space absorption in India, constantly leading the office leasing market and making up between 28 and 30 percent of the total demand.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Indian office rental market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• DLF Ltd.
• Embassy Group
• Prestige Group
• Brigade Group
• RMZ Corp
• Godrej Properties
• Mindspace Business Parks REIT
• Tata Realty and Infrastructure Ltd.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at India, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Indian office rental market based on the below-mentioned segments:

Indian Office Rental Market, By Office Type

• Traditional Office Spaces
• Co-working Spaces
• Serviced Offices
• Business Centers
• Others

Indian Office Rental Market, By Lease Duration

• Short-term Rentals
• Medium-term Rentals
• Long-term Rentals

Indian Office Rental Market, By End-User Industry

• Technology & IT
• Financial Services
• Healthcare & Pharmaceuticals
• Legal & Professional Services
• Startups & SMEs
• Creative & Media
• Others