Mumbai: The Indian Institute of Management Bangalore (IIMB) and CRE Matrix have released the 3rd-edition of the IIMB–CRE Matrix Commercial Property Rental Index (CPRI) for Q2 2025. The CPRI is India’s first comprehensive rental index designed to track effective rental movements in Grade A and A+ commercial office spaces across the country’s ten cities: Bengaluru, Hyderabad, Mumbai, Gurugram, Pune, Chennai, Noida, Navi Mumbai, Delhi, and Thane. Together, these markets represent over 90 percent of India’s institutional-quality office inventory.
The index—India’s first and only scientific benchmark of commercial rental performance—shows that Pan-इंडिया Grade A/A+ office rentals rose 3.8% year-on-year across Tier 1 cities.
Key Highlights:
• Mumbai tops India’s city ranking with the highest quarterly rental growth of 3.6% QoQ, cementing its position as the country’s most consistent office market.
• Delhi leads in annual growth, with rents soaring 16.4% YoY, reflecting the premium commanded by scarce high quality office assets in the city.
• Gurugram also contributed in the rental surge, increasing by 3.2% on a QoQ basis in Q2 CY 2025 and 8.1% over the last 12 months.
• Navi Mumbai records the fastest 3-year CAGR of 9.0%, making it India’s most resilient post-COVID office market.
• Chennai’s Northern Suburbs emerge as the breakout performer, registering a 9.8% QoQ surge—the highest across India this quarter.
• Whitefield, Bengaluru, grew by 8% over the previous quarter and continued to dominate with the highest rental index value (243) of any macro-market in India.
• Over the past five years, CBD Mumbai posted an exceptional 9.6% CAGR, reinforcing the strength of India’s financial capital’s core business district.
The index, which is developed jointly by IIM Bangalore’s research team and CRE Matrix, uses granular lease-level data sourced from the CRE Matrix database and employs a robust spatio-temporal Bayesian modelling framework. This approach enables the index to accurately capture changes in rentals in every market even when transactions are limited.
The CPRI is updated quarterly and uses Q1 2014 as its base period (index = 100).
Unlike conventional price-based indices that rely on headline rents, the IIMB–CRE Matrix CPRI focuses on effective rents, which adjust for variations in lease terms such as rent-free periods, abnormal security deposits, free car parks, and escalation clauses. This ensures that the index is less likely to be gamed as it reflects tenants’ true financial commitment over their lease terms.
Prof. Venkatesh Panchapagesan: “We are excited to launch our 3rd edition of the CPRI index. We had taken some additional time this quarter to tighten our data definitions, so our index continues to remain robust in a dynamic market like India. The fact that our index is less likely to be gamed makes it the most accurate representation of the commercial office rental market in India. We hope CPRI will become the go-to benchmark for not only the landlords and tenants but also investors in REITs.”
Abhishek Kiran Gupta, CEO & Co-Founder, CRE Matrix, added: “IIMB-CRE Matrix is globally the only index that cuts through distortions to show real rent trends based on actual registered transactions in the Office real estate segment. Bengaluru’s Whitefield and Chennai’s Northern Suburbs sharp quarterly uptick tell us that tenant demand is spreading beyond the traditional CBDs”.
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