The prime workplace market of Delhi-NCR continues to see rental values preserve ranges seen previously 4 quarters. (Representative picture)
Knight Frank mentioned prime workplace rents in Delhi-NCR, Mumbai and Bengaluru stay secure in Q3 2023
Knight Frank, in its newest version of the Asia-Pacific Prime Office Rental Index for Q3 2023 famous that Delhi-NCR is the 6th costliest workplace area rental market throughout the APAC area. Hong Kong SAR continued to be APAC’s costliest workplace market throughout the quarter.
Demand for workplace area in India’s largest occupier markets remained sturdy with over 700,000 sqm of workplace area leases throughout the quarter. Strong occupiers demand for establishing Global Capability Centres (GCC) constituted a lot of the demand, which made up for slower demand from flex area operators.
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According to IT commerce physique Nasscom, India may have over 2,500 GCCs by the tip of the last decade, up from 1,580 now and a labour pressure that can greater than double to 4.5 million.
Prime workplace leases in Delhi-NCR, Mumbai, and Bengaluru remained sturdy in YoY phrases whereas the leases for the subsequent 12 months are additionally anticipated to remain secure at present charges.
On 1 / 4-on-quarter (QoQ) foundation, the typical rents throughout the area confirmed stability, with declines within the Chinese Mainland markets moderating. This was counter-balanced by rental development in most different developed markets.
Overall, the quarterly report indicated that according to Q2 2023, 15 of the 23 tracked cities reported both secure or growing rents, just like Q3 2023.
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Shishir Baijal, chairman and MD, Knight Frank India, mentioned, “The Indian economy’s relative strength remains a magnet for global corporate interest, evident in the resurgence of demand in the Indian office space market. With the positive outlook in the office market and improved physical occupancy, the stability in occupancy and rental rates since 2022, coupled with the rising demand in 2023, reinforce our belief that the Indian office market’s resilience will persist in the short to medium term.”
Delhi-NCR
The prime workplace market of Delhi-NCR continues to see rental values preserve ranges seen previously 4 quarters. The prime workplace hire of town was recorded at Rs 340/sq ft/month making it the 6th costliest workplace market within the APAC area.
Mumbai
The prime workplace hire of town was recorded at Rs 302/sqft/month and was the ninth costliest business market within the APAC area.
Bengaluru
Bangalore stands nineteenth on the record and is likely one of the least costly prime workplace markets within the APAC area. The prime workplace hire of town was recorded at Rs 135/sq ft/month. The rental worth within the metropolis is projected to stay regular throughout the next 12 months.
Tim Armstrong, international head of occupier technique and options, Knight Frank, mentioned, “Despite vacancies rising in the region, rental declines in the third quarter have stabilised, supported by a trend favouring flight-to-quality properties. Overall, the current expansionary cycle in the region affords occupiers a broader range of options and strategies to consider, enhancing their ability to secure favourable lease terms amid current soft conditions.”
“While it is still premature to make a definitive judgement amidst the most recent political developments, the evolving geopolitical landscape is expected to cast a shadow on occupier prospects as companies meticulously evaluate the accompanying risks. As businesses adapt to a future hybrid work model, the trio of location, amenities, and sustainability have gained significance in rebalancing the scales in favour of in-person work,” Armstrong added.
