India’s office market has traditionally been defined by large commercial hubs such as Bengaluru, Mumbai, Hyderabad, Pune, Chennai and Delhi-NCR. These cities continue to dominate leasing activity, attract institutional capital and serve as headquarters for leading domestic and multinational companies. However, beneath this headline growth story, another trend is steadily gaining momentum, the rise of affordable office markets.
According to CRE Matrix’s latest analysis of office rentals across India, Indore currently ranks as the country’s most affordable office market with weighted average rentals of ₹45 per sq ft per month. It is followed by Thiruvananthapuram (₹45.3 psf), Jaipur (₹49.8 psf), Coimbatore (₹50.2 psf), Visakhapatnam (₹56 psf), Ahmedabad (₹60.6 psf), Noida (₹65.8 psf), Lucknow (₹66.5 psf), Navi Mumbai (₹71.3 psf) and Thane (₹74 psf).
While affordability is often associated with lower occupancy costs, the significance of these markets extends far beyond rental savings. They increasingly represent the next phase of India’s commercial real estate growth story.
One of the key drivers behind this shift is the changing approach adopted by occupiers. Corporates today are evaluating locations not only on rental costs but also on access to talent, infrastructure quality, operational efficiency and long-term scalability. As businesses seek to optimise costs without compromising productivity, emerging office markets are becoming attractive alternatives to traditional gateway cities.
Infrastructure development has also played a transformative role. Improved airport connectivity, metro rail networks, industrial corridors and digital infrastructure have enhanced the attractiveness of several Tier-II and emerging cities. Markets that were once considered peripheral are now integrated into broader economic ecosystems, enabling companies to operate seamlessly across multiple locations.
Another important factor is the emergence of Global Capability Centres (GCCs), technology firms, engineering services companies and flexible workspace operators in these markets. As organisations expand their footprint across India, affordable office destinations provide an opportunity to diversify operations while maintaining cost discipline.
Interestingly, the inclusion of markets such as Noida, Navi Mumbai and Thane highlights that affordability is not limited to smaller cities. These locations have evolved into mature commercial centres while continuing to offer rental advantages compared to premium central business districts.
As India’s office sector matures, occupiers are expected to adopt increasingly distributed location strategies. In this evolving landscape, affordability will remain an important consideration, but value creation will be the true differentiator.
The cities that appear affordable today are simultaneously building the foundations for tomorrow’s office demand. For occupiers, investors and developers alike, these markets deserve close attention as they emerge as strategic business destinations within India’s rapidly expanding commercial real estate ecosystem.
Abhishek Kiron Gupta
CEO & Co-founder,
CRE Matrix
