Mumbai, November 16 (IANS). Prime office rents in Delhi-NCR, Mumbai and Bengaluru remained stable in the July-September period, while Mumbai and Bengaluru witnessed a YoY growth of five per cent and three per cent respectively due to strong demand and limited new supply. This information has come out in a report released on Saturday.
According to the report, prime office rents in Delhi-NCR, Mumbai and Bengaluru remained strong on a yearly basis. With this, rental rates are expected to remain stable in the next 12 months.
According to a report by Knight Frank, Delhi-NCR is currently the sixth most expensive office space rental market in the Asia-Pacific region.
The combined transaction volume of these three markets consistently reached all-time highs in the second and third quarters of 2024. The credit for this growth largely goes to Global Competence Centers (GCC) and India-focused businesses.
The report said the surge reflects optimism about India’s economic future, its rich talent pool, business-friendly regulations and the continued growth of its vast consumer markets.
“The strength of the Indian economy is attracting global corporates, as evidenced by the sustained demand across the country’s key office markets,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
“This positive outlook, coupled with stable rental levels through 2022 and rising demand into 2024, underlines our confidence in the continued strength of the Indian office market in the near to medium term,” he said.
In Q3 2024, Bengaluru saw the largest volume growth, at 158 percent year-on-year. Bengaluru’s position as a GCC hub was further strengthened by the fact that 62 per cent of the positions traded in the city were from the GCC.
Most of the business in Mumbai and NCR was due to companies dealing with India.
Prime office rent in Mumbai was recorded at Rs 317 per sq ft per month. In Bengaluru it was Rs 138 per sq ft per month and in Delhi-NCR it was Rs 340 per sq ft per month.
–IANS
SKT/AKJ
