Delhi-NCR ranks as APAC’s fifth most expensive office rental market, with monthly prime office rents at Rs 340 per sq ft. Indian office space transactions surged 50% in Q2 2024, driven by returning employees and strategic corporate investments. Mumbai and Bengaluru also saw stable rental rates and high demand.
According to the latest Knight Frank APAC Prime Office Rental Index, Delhi-NCR has emerged as the fifth most expensive office space rental market in the Asia-Pacific (APAC) region. Transactions across India’s three major markets saw a remarkable 50 percent increase in the second quarter (Q2) of 2024, highlighting the growing demand and stability in the region.
Prime office rents in Delhi-NCR, Mumbai, and Bengaluru have maintained steady levels, reflecting a robust market. “The prime office market in Delhi-NCR has sustained rental values consistently over the past six quarters. With a prime office rent of Rs 340 per square ft a month, it ranks as the fifth most expensive office market in the APAC region,” the report stated.
Bengaluru remains a prime destination, with 4.9 million square feet leased in Q2 2024, leading among the Indian cities. This surge in leasing activity is attributed to leadership teams encouraging employees to return to the office, positively impacting transaction volumes. The report also noted that most transactions were driven by India-facing businesses, underscoring the country’s appeal due to its consumer markets and skilled labour pool.
India’s office space market has garnered significant global corporate interest, underscoring the nation’s position as one of the fastest-growing large economies. “This has led to record-high transaction volumes in the first half of 2024, with a 33 percent rise year-over-year, driven by Indian businesses and global capability centres (GCCs). Rental rates have remained steady in the three major occupier markets,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India.
Hong Kong remained the most expensive office market in APAC during the quarter. Meanwhile, Mumbai and Bengaluru also featured prominently, with prime office rents recorded at Rs 302 and Rs 137 per square foot per month, respectively, placing Mumbai as the region’s eighth most expensive commercial market.
The sustained demand and stable rental rates in these key Indian cities indicate a healthy office space market bolstered by strategic corporate investments and a returning workforce. As India continues to attract global interest, its office space market is poised for further growth and development.
