New Delhi, August 11, 2025: Despite the recording of a robust absorption of 18.9 mn square meters in H1 2025, the average rental values in the top seven cities remained largely stable, ranging between INR 18-31/SQ FT/month. Pune has the highest rent of INR 31/SQ FT/month, powered by a strong demand from 3PL, Automotive, Engineering and production sectors. The city registered a significant increase of 34% on six annual basis and 13% on an annual basis, mainly driven by high -quality transactions in important submarkets such as KHED and Chakan. Limited availability of land has led to an increase in land prices, which further increases the total transaction values.
On the other hand, Mumbai witnessed the lowest rent of INR 18/SQ FT/month in the top seven cities. While the rental increased by 2% in H1 2025 compared to H2 2024, they fell by 2% in the same period a year ago. The overall stability in rental can be attributed to a balanced dynamic of the demand supported by new additions.
The rental in Hyderabad remained stable on INR 19/m²/month in H1 2025, with a modest annual increase of 1%. Conversely, Bengaluru registered an annual decrease of 5% despite a significant increase in demand, in which INR 19/SQ FT/month was reached. The rent in Chennai was on INR 25/SQ FT/month in H1 2025, witnessing a half -yearly increase of 3% and an annual increase of 2%.
The rent in the NCR region signed considerably by 10% and 4% over H2 2024 per year, with an INR 21/m²/month in H1 2025. This decrease can be attributed to a large leasing share, around 60%, registered at rates below the average rent of the city.
The rental value in Kolkata is on INR 21/SQ FT/month, with a muted half -yearly fall of 1% but an annual growth of 8%, despite limited absorption activities.
Urban rental values
City | Weighted average rental values (INR/SQ FT/month) | H1 2025 vs H2 2024 (% Change) | H1 2025 vs H1 2024 (% Change) |
Bengaluru | 19 | Zero | -5% |
Chennai | 25 | 3% | 2% |
Hyderabad | 19 | 2% | 1% |
Rubble | 31 | 34% | 13% |
Mumbai | 18 | 2% | -2% |
Kolkata | 21 | -1% | 8% |
NCR | 21 | -4% | -10% |
Source: Vestian research
Despite a significant growth of absorption and rent, investments fell sharply to USD 32 mn in H1 2025, which marked a steep annual decrease of 98%. The share in total investments also reduced 42% in H1 2024 to only 1%. This substantial decline indicates a combination of factors that influence investor sentiment, including a strategic shift to models for asset light, cautious investor behavior in the midst of global economic uncertainties and rising operational costs.
Institutional investments
| Period | Institutional investments (USD MN) | % Share of total investments in RE |
| H1 2025 | 32 | 1% |
| H2 2024 | 399 | 13% |
| H1 2024 | 1,559 | 42% |
Source: Vestian research
Shrinivas Rao, Frics, CEO, Vestian, said: “While the first half of 2025 witnessed a dip in investments, strong demand on important markets, the expansion of multimodal logistics infrastructure and an emphasis on sustainable and technical and technical use are long -term growth. Golf of growth.”
Corporate Comm India (CCI Newswire)
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