Delhi-NCR Office Market Ranks 5th Most Expensive in Asia Pacific Region
Delhi-NCR ranks as the 5th most expensive office market in the APAC region with a prime office rent of INR 340/sqft/month.
Office MarketDelhi NcrApac RegionKnight FrankCommercial Office SpaceReal Estate MumbaiAug 04, 2024
According to Knight Frank's latest Asia-Pacific Prime Office Rental Index for Q2 2024, transaction activities across India's three major occupier markets saw a notable 50% increase in Q2 2024, maintaining the robust occupier sentiment that has fuelled leasing activities since 2023.
Bengaluru retained its position as the leading destination among the three Indian cities, with 4.9 million square feet (mn sq ft) leased in Q2 2024. The leadership teams actively encouraging employees to return to office has also positively impacted the transaction volumes in the market.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “India’s office space market has seen a surge in global corporate interest, reflecting the country’s status as one of the fastest-growing large economies. This has led to record-high transaction volumes in the first half of the year 2024, with a 33% rise YoY, driven by Indian businesses and GCCs.”
Delhi-NCR has sustained rental values consistently over the past six quarters. The prime office market in Delhi-NCR has a prime office rent of INR 340/sqft/month, ranking it as the 5th most expensive office market in the APAC region.
Mumbai's prime office rent was recorded at INR 302/sqft/month, ranking it as the 8th most expensive commercial market in the APAC region. Bengaluru ranks 18th and is among the most affordable prime office markets in the APAC region.
Tim Armstrong, global head of occupier strategy and solutions, Knight Frank, said, “The current trend reflects a business cycle downturn. Major office sectors such as finance and technology continue to downsize staff strength amid ongoing uncertainty in the business environment.”
The report noted that 15 out of 23 tracked cities reported either stable or rising rental rates. Hong Kong SAR continued to be APAC’s most expensive office market during the quarter.
Knight Frank is a global real estate consultancy that provides a wide range of services to property developers, investors, and occupiers.
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Commercial office space in India is expected to hit record highs, driven by stable socio-economic and political conditions and a strong growth trajectory.
The region’s ample supply pipeline to explore quality options and capitalise on current conditions by securing favourable rates, given that new supply is expected to tighten due to high interest rates impacting future construction.
The majority of transactions were driven by India-facing businesses reflecting a sustained strategic interest in India’s consumer markets and its skilled labour pool.
Frequently Asked Questions
What is the rank of Delhi-NCR in the APAC region in terms of office market rent?
Delhi-NCR ranks as the 5th most expensive office market in the APAC region with a prime office rent of INR 340/sqft/month.
What is the name of the report that states Delhi-NCR as the 5th most expensive office market in the APAC region?
Knight Frank's Asia-Pacific Prime Office Rental Index for Q2 2024
Which city retained its position as the leading destination among the three Indian cities in terms of office leasing?
Bengaluru
What is the expected trend in commercial office space in India?
Commercial office space in India is expected to hit record highs, driven by stable socio-economic and political conditions and a strong growth trajectory.
Who is the Chairman and Managing Director of Knight Frank India?
Shishir Baijal
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