Due to a noteworthy 50% increase in transactions across the three major Indian markets in the second quarter (Q2) of 2024, Delhi-NCR is now the sixth most expensive office space rental market in the Asia-Pacific (APAC) region, according to a research released on Monday.
The Knight Frank APAC Prime Office Rental Index shows that Bengaluru, Mumbai, and Delhi-NCR all had stable prime office rentals.
Throughout the previous six quarters, rental values in Delhi-NCR’s premium office market have steadily increased. It is the seventh most expensive office market in the APAC region, with prime office rent of Rs 340 per square foot per month, according to the research.
Out of the three Indian cities, Bengaluru remained the most popular destination, with 4.9 million square feet leased in the second quarter of 2024.
The report claims that the leadership teams’ aggressive efforts to get workers back to the office have also had a favorable effect on the number of transactions in the market.
Businesses with a presence in India drove the majority of the transactions, demonstrating a persistent strategic interest in the nation’s consumer markets and skilled labor pool.
Given that India has one of the largest and fastest-growing economies in the world, the market for office space has seen a spike in interest from international corporations.
Due to this, there have been record-breaking transaction volumes in the first half of 2024, up 33% year over year, with Indian companies and GCCs (global capability centers) leading the way. The three primary occupier markets’ rental rates have not changed, according to Knight Frank India Chairman and Managing Director Shishir Baijal.
Throughout the quarter, Hong Kong remained the most costly office market in Asia.
Mumbai is the ninth most expensive commercial market in the Asia-Pacific area, with premier office rent in the city being recorded at Rs 302 sq ft a month. Bengaluru’s premier office rent was reported to be Rs 137 square feet per month.
