A new commercial property rental index has identified Hyderabad as the leading city for Global Capability Centre (GCC) office rental values among India’s major office markets. According to the IIM Bangalore CRE Matrix Global Capability Centre Commercial Property Rental Index, the pan-India index stood at 165 in Q1 CY2026, with the base year set at Q1 CY2014 at 100. The national index recorded a 3-year compound annual growth rate (CAGR) of 0.9%, indicating a stable overall market.
The report highlighted varying performance across cities, driven by different occupier demand patterns and market maturity. Hyderabad recorded the highest index value at 212.1, with GCC occupiers paying a 15% rental premium over non-GCC tenants. Pune followed closely with an index of 210.7, where GCC occupiers paid 21% higher rentals than other tenants.
Bengaluru remained India’s largest GCC office market, recording an index value of 190 and a 3-year growth rate of 1.6%. Navi Mumbai posted the highest 3-year rental CAGR among major markets at 13.4%. Mumbai and Thane also reported rental growth, while Mumbai’s central suburbs and Chennai’s northern suburbs recorded rental CAGR of over 22% during the last 3 years.
The report noted that Chennai’s overall headline index declined year-on-year despite stable effective rents for comparable office properties. This was attributed to changes in the transacted asset mix rather than a broad decline in rental values. Similarly, the softer combined index for the Delhi National Capital Region reflected changes in regional composition and not weaker occupier demand.
The index is based on a dataset covering 100 crore sq. ft. of office space, including more than 2,000 commercial assets and over 19,000 leasing transactions across the country.
Abhishek Kiran Gupta, Co-founder and CEO of CRE Matrix and IndexTap, said the index captures the leasing behaviour of GCC occupiers, who typically sign larger deals, commit to longer lease terms, and maintain higher specifications. He added that Hyderabad recorded a 15% rental premium, while demand in Bengaluru, Pune, and the National Capital Region reflected price-efficient decisions.
Venkatesh Panchapagesan, Professor of Finance and Chairperson of the Real Estate Research Initiative at IIM Bangalore, said GCCs have become a major force in India’s commercial real estate market. He noted that the index offers a dedicated benchmark for tracking rental movements, pricing trends, occupier demand, and quarter-on-quarter market changes specific to GCC office leasing.
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