Delhi-NCR Ranks 6th Most Expensive in APAC’s Office Rental Market for Q3 2023


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    A recent study of the office rental market has identified Delhi-NCR as the sixth most expensive location in the Asia Pacific (APAC) region. This finding is part of the Asia-Pacific Prime Office Rental Index for Q3 2023, presented in a Knight Frank report. Hong Kong SAR secured the top spot in terms of office space rental costs for the same quarter.

    The report reveals that India’s largest occupier markets maintained a robust demand for office space during the period, with over 700,000 square meters of space being leased. Notably, a significant portion of this demand was driven by the establishment of Global Capability Centres (GCC), compensating for a relatively slower demand from flexible space operators.

    Prime office rentals in Delhi-NCR, Mumbai, and Bengaluru demonstrated strength in their annual terms, and these rental rates are anticipated to remain stable over the next 12 months. On a quarterly basis, the average rent across the region exhibited stability, with declines in the Chinese mainland markets mitigated by rental growth in most other developed markets. In summary, the quarterly report indicated that 15 out of the 23 tracked cities reported either stable or increasing rents, mirroring trends observed in the previous quarter.

    Shishir Baijal, Chairman and Managing Director of Knight Frank India, expressed optimism about the Indian office market’s outlook, highlighting the stability in occupancy and rental rates since 2022, coupled with rising demand in 2023.

    In terms of specific rankings, Bengaluru secured the 19th position on the list and emerged as one of the most cost-effective prime office markets in the APAC region. The city’s prime office rent was recorded at Rs 135 per square foot per month, with the expectation that rental values will remain consistent over the next 12 months.

    Conversely, Delhi-NCR’s prime office market continued to maintain its high rental values. The city’s prime office rent was recorded at Rs 340 per square foot per month, solidifying its position as the sixth most expensive office market in the APAC region. Mumbai, on the other hand, stood at ninth place, with a prime office rent of Rs 302 per square foot per month in the APAC region.

    Also Read: Knight Frank India’s Report Reveals Hyderabad as Second Most Expensive Real Estate Hub in India


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