Delhi-NCR 10th most expensive office market in Asia-Pacific: Knight Frank
Delhi-NCR is the 10th most expensive commercial real estate market in the Asia-Pacific (APAC) region, according to Knight Frank’s Office Rental Index for the April-June quarter.
The annual prime nominal rent for commercial office space in the city was recorded at $51.6 (`4,078) per square foot per year.
Hong Kong SAR continued to be Asia’s most expensive office market with an annual rent of $175.4 per square foot per year.
In terms of annual growth, Bengaluru saw the highest increase in prime office rental percentage of 12.1% on an annual basis in the second quarter of calendar year 2022. Mumbai recorded the highest quarterly change 7% of the rental value of its prime offices.
Of the 23 cities tracked by Knight Frank’s Asia-Pacific Premium Office Rental Index, 17 saw rents flat or rising in the second quarter of 2022, up from 21 in the prior quarter.
Shishir Baijal, President and Managing Director of Knight Frank India, said: “As the economy stabilizes after the pandemic, there is an increase in new hires across most industries as well as a move back to the office. which propels the demand for offices in India. The Indian office market has seen a strong rental trend which has continued in the second quarter of 2022, with Bengaluru leading in transaction volumes. With its unique position, India can expect its key driving sectors such as IT/ITS to continue to grow despite global headwinds.
In Mumbai, prime office rent was recorded at `3,622 per square foot per year and it was the 11th most expensive commercial market in the APAC region. The city’s high-end office market grew 7% year-on-year after three quarters of stagnation. The rental value is expected to increase over the next 12 months.
At the 22nd position on the APAC Prime Office Rental Index, Bengaluru stands as one of the cheapest prime office rental markets in the region. The city’s main office rent was recorded at `1,620 per square foot per year.
The Delhi-NCR prime office market continues to see rental values hold at levels seen over the past four quarters. Going forward, transaction volumes are expected to increase in the city. All three Indian cities are expected to see their rental values increase over the next 12 months.