IIM Bangalore and CRE Matrix Release Q2 2025 Commercial Property Rental Index; Office Rents Up 3.8% YoY Across India

The Indian Institute of Management Bangalore (IIMB) and CRE Matrix have jointly released the third edition of the IIMB-CRE Matrix Commercial Property Rental Index (CPRI) for Q2 2025. The CPRI is India’s first comprehensive rental index tracking effective rental movements in Grade A and A+ commercial office spaces across the country’s 10 major cities, Bengaluru, Hyderabad, Mumbai, Gurugram, Pune, Chennai, Noida, Navi Mumbai, Delhi, and Thane, which together represent over 90% of India’s institutional-quality office inventory.

Developed using granular lease-level data from the CRE Matrix database, the index employs a spatio-temporal Bayesian modelling framework to accurately measure rental trends, even in markets with limited transactions. The CPRI, updated quarterly with Q1 2014 as its base (index = 100), focuses on effective rents, accounting for lease variations such as rent-free periods, deposits, car parks, and escalation clauses, offering a more precise measure of tenant commitments.

According to the latest findings, Pan-India Grade A/A+ office rentals increased by 3.8% year-on-year across Tier 1 cities, underscoring the continued resilience and demand in India’s commercial real estate sector.