Delhi-NCR ranks 6th in Asia Pacific for high office rents

Delhi-NCR is now the sixth most expensive office market in the Asia Pacific, with rents at Rs 340 per sq ft, according to Knight Frank India. Meanwhile, Mumbai and Bengaluru see steady demand, with rents rising 5% and 3%, respectively. Domestic companies are driving a shift in India’s office leasing, with projections to lease 60-65 million square feet by 2025, signaling a move away from global corporations. Despite global uncertainties, the outlook for India’s office market remains positive.

Delhi-NCR has been ranked as the sixth most expensive office market in the Asia Pacific region, with average monthly rents reaching Rs 340 per sq ft, according to the latest data from Knight Frank India. Mumbai follows at eighth place, with office rents at Rs 317 per sq ft. The Asia-Pacific Prime Office Rental Index for Q3 2024 also lists Hong Kong SAR as the region’s most expensive office market.

In Delhi-NCR, prime office rents have remained stable in Q3 2024, reflecting consistent demand despite limited new supply. Meanwhile, Mumbai and Bengaluru saw year-on-year rent increases of 5% and 3%, respectively, driven by strong corporate demand.

Bengaluru, with a prime office rent of Rs 138 per sq ft, ranks 18th on the list, making it one of the more affordable office markets in the region.

Alongside these trends, the Indian office market is experiencing a significant shift. Domestic companies are projected to lease 60-65 million square feet of office space between 2024 and 2025, a move that reflects a shift away from the historical dominance of global corporations, especially those from the United States, according to a report by CBRE. This increasing demand from Indian firms is contributing to the overall strength of the office market, with transaction volumes on track to hit record highs in 2024. Despite global economic uncertainties, rental rates have remained stable, and the outlook for India’s office market is positive, fueled by sustained occupancy and strong domestic demand.