Delhi-NCR is the sixth most expensive office market in Asia Pacific, while Mumbai is ranked eighth.
By Bricksnwall | 2024-11-17
Bengaluru experienced 150% YoY rise in transaction volumes and high rents of ₹1,661 per sq ft yearly.
Delhi-NCR is the 6th most expensive office space
rental market in Asia Pacific, with an average monthly rate of ₹340 per sq ft.
Mumbai ranks 8th, with an average monthly rental of ₹317 per sq. ft. According
to Knight Frank's most recent Asia-Pacific Prime Office Rental Index for Q3
2024, Hong Kong SAR remains the most expensive office market in APAC throughout
the quarter.
Prime rents in the NCR were steady in Q3 2024,
while Mumbai and Bengaluru recorded YoY gains of 5% and 3%, respectively, owing
to strong occupier demand and limited new supply.
The premier office market in Delhi-NCR continues to
see rental values remain at levels recorded in the previous four quarters. The
city's highest office rent is ₹340 per sq ft per month, making it the sixth
most costly market in APAC..
Mumbai's prime office rent is ₹317 per sq ft per
month, ranking it as the 8th most expensive commercial market in APAC.
Bengaluru ranks 18th on the list.
Bengaluru ranks 18th on the list and is one of the
least expensive premier office cities in APAC. The city's premium office rent
was ₹138 per square foot per month. According to the report, the city's rental
value is expected to remain stable over the next year.
Bengaluru had the highest volume growth in Q3 2024,
increasing by 158% year on year. Bengaluru's status as a Global Capability
Centres hub was further bolstered by the fact that 62% of the space traded in
the city came from GCC countries. Companies dealing with India accounted for
the majority of Mumbai and NCR's business volume.
Prime office rentals in Delhi-NCR, Mumbai, and
Bengaluru remained strong year on year, and rental rates are likely to remain
consistent over the next 12 months.
Overall, 16 of the 23 monitored cities globally reported stable or rising rents year on year, up from 15 in Q2 2024. Notably, Brisbane experienced the biggest year-on-year rise in Q3 2024, indicating a strong trend in numerous markets. The region's stabilising vacancy rates have decreased by 0.2 percentage points, according to the data.
The resiliency of the Indian economy continues to
draw considerable global corporate interest, as seen by continued demand in
India's key office markets. Quarterly transaction volumes have reached all-time
highs and are expected to surpass yearly benchmarks in 2024, while rental rates
remain consistent. This positive outlook, supported by consistent physical
occupancy, stable rent levels since 2022, and rising demand in 2024, reinforces
our belief in the Indian office market's long-term strength," said Shishir
Baijal, Chairman and Managing Director of Knight Frank India.
The Asia-Pacific prime office market is expected to remain tenant-friendly in 2024. With an abundant supply stream, landlords have had to employ accommodating measures to maintain occupancy levels. Following the delivery of approximately 12 million sqm of office space in 2024, the supply pipeline for 2025 is likely to be reduced by around one-fifth.
Source: Hindustan Times
