Delhi NCR most expensive office market in India, 6th in Asia Pacific; where do Mumbai & Bengaluru stand? Check here

Delhi National Capital Region (NCR) and Mumbai rank among the top 10 most expensive office space rental markets in the Asia Pacific (APAC) region, according to Knight Frank's Asia-Pacific Prime Office Rental Index for Q3 2024.

Delhi NCR was the sixth most expensive office market in the APAC region for the third quarter of 2024, with rent at ₹340 per square foot monthly.

“The prime office market of Delhi-NCR continues to see rental values maintain levels seen in the past four quarters. The prime office rent of the city was recorded at ₹340/sqft/month, making it the 6th most expensive office market in the APAC region,” according to the research report.

Mumbai is the eighth most expensive commercial market in the Asia Pacific region. These were the only two Indian cities ranked among the top 10 most expensive office rental spaces in Asia Pacific.

“The prime office rent of the city was recorded at ₹317/sqft/month and was the 8th most expensive commercial market in the APAC region,” said Knight Frank in its report. 

Bengaluru came 18th on the list and is one of the least expensive prime office markets in the APAC region. Rent was recorded at ₹138 per square foot every month. According to the report, the city's rental value is estimated to remain steady in the next year.

“The resilience of the Indian economy continues to attract strong global corporate interest, as reflected in the sustained demand across India’s major office markets,” said Shishir Baijal, chairman and managing director of Knight Frank India.

“Quarterly transaction volumes have reached record highs and are likely to exceed annual benchmarks in 2024, while rental rates remain stable. This positive outlook, supported by consistent physical occupancy, steady rent levels since 2022, and rising demand in 2024, underscores our confidence in the sustained strength of the Indian office market in the near to medium term,” he said. 

Other cities in the rental index include Brisbane, Perth, Singapore, Ho Chi Minh City, Bangkok, Kuala Lumpur, Tokyo, Melbourne, Seoul, Sydney, Taipei, and Auckland. 

The London-based research agency also highlighted that the Asia-Pacific prime office sector is poised to remain tenant-favourable in 2024. The office space supply pipeline for 2025 is expected to decrease by nearly one-fifth. While the availability is expected to decline, the fall will happen gradually over time.

“However an increase in leasing activity could quickly tighten the availability of prime spaces, reinforcing the ongoing trend of flight-to-quality as tenants seek to secure premium locations that meet their evolving workspace needs,” according to the research report.