Delhi-NCR commercial real estate 10th most expensive in Asia

Office rents in Delhi-NCR figure as the 10th most expensive in the Asia-Pacific region (APAC). A Knight Frank Asia-Pacific Prime Office Rental Index Q2 2022, released Tuesday showed that the annual prime headline rent of commercial office space in Delhi-NCR was recorded at $51.6 per sqft/year.  Hong Kong SAR continued to be Asia’s most expensive office market with an annual rent of $175.4 per sqft/year. The report also showed how Asia-Pacific prime office rents remain resilient in Q2 despite rising inflation.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “As the economy stabilises post-pandemic, there is a rise in new hiring across most industries along with a move towards a return to the office which is propelling demand for offices in India. The Indian office market witnessed a strong leasing trend that continued into Q2 2022 with Bengaluru leading in transaction volumes. With its unique position, India can expect its key driving sectors such as IT/ITeS to continue to grow despite global headwinds.” 

Performance of three Indian rental markets  

The Knight-Frank report highlights how Bengaluru office rental growth in the APAC region in Q2 2022 stands at 12.1 per cent, followed by Mumbai at 7 per cent, year on year (YoY) basis. 

 

Bengaluru  

With over 12 per cent growth, this city was the best-performing prime office market in the APAC region in terms of rental growth in Q2 2022 as compared to last year. The rental value in the city is further projected to rise during the following 12 months. It figures at position 22 on the APAC Prime Office Rental Index. The prime office rent of the city was recorded at Rs 1,620 per sqft/year.  

 

Mumbai 

The prime office rent of the city was recorded at Rs 3,622 per sqft/year and figured as the 11th most expensive commercial market in the APAC region. The prime office market of the city grew 7 per cent YoY after stagnation for three quarters. The rental value is expected to increase over the next 12 months.  

 

Delhi-NCR 

The prime office market of Delhi-NCR continues to see rental values maintain levels seen in the past four quarters. However, the rental value is expected to increase over the next 12 months as transaction volumes are expected to pick up going forward. The prime office rent of the city was recorded at Rs 4,078 per sqft/year.  

The APAC office rental index registered a growth of 1.0 per cent quarter-on-quarter (QoQ), after gaining for two consecutive quarters.  The overall index is up by 2.0 per cent year-on-year. Of the 23 cities tracked by Knight Frank’s Asia-Pacific Prime Office Rental Index, 17 cities recorded stable or increasing rents in Q2 2022, as compared to 21 in the previous quarter. 

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