Delhi-NCR and Mumbai Among Top Office Markets in Asia Pacific
Delhi-NCR and Mumbai have been ranked among the top ten office markets in the Asia Pacific region, according to the Knight Frank APAC Prime Office Rental Index. Delhi-NCR is the sixth most expensive office space market, while Hong Kong remains the most expensive. In Q3 2024, prime rents in Delhi-NCR stayed stable, while Mumbai and Bengaluru saw increases of 5% and 3% respectively, due to strong demand and limited supply.
In Q2 and Q3 2024, transaction volumes in these markets reached all-time highs, reflecting optimism about India’s economic future and business-friendly environment. Bengaluru experienced the largest growth, with a 158% increase in volume, largely driven by Global Capability Centres (GCCs). Most business in Mumbai and NCR was India-focused.
Overall, 16 out of 23 cities monitored reported stable or increasing rents. Brisbane recorded the highest growth. Vacancy rates in the region declined slightly by 0.2 percentage points. Shishir Baijal, Chairman and Managing Director of Knight Frank India, highlighted the strong global interest in India’s office markets, with record transaction volumes and stable rental rates expected to continue.
Delhi-NCR’s prime office rent is Rs 340/sqft/month, making it the 6th most expensive in the APAC region. Bengaluru, at Rs 138/sqft/month, is one of the least expensive. The report predicts a tenant-favorable market in 2024, with a decrease in the supply pipeline for 2025.
Doubts Revealed
Delhi-NCR -: Delhi-NCR stands for Delhi National Capital Region. It includes Delhi and nearby areas like Gurgaon, Noida, and Ghaziabad. It’s a big area where many people live and work.
Mumbai -: Mumbai is a large city in India, known as the financial capital of the country. It’s a busy place with lots of businesses and offices.
Asia Pacific -: Asia Pacific is a region that includes many countries in Asia and the Pacific Ocean area, like India, China, Japan, and Australia. It’s a big part of the world with lots of people and businesses.
Prime rents -: Prime rents refer to the cost of renting the best and most desirable office spaces in a city. These are usually in popular areas where many businesses want to be.
Q3 2024 -: Q3 2024 means the third quarter of the year 2024. A quarter is a three-month period, so Q3 includes July, August, and September.
Transaction volumes -: Transaction volumes refer to the number of office spaces being bought, sold, or rented. High transaction volumes mean lots of business activity in the office market.
Global Capability Centres -: Global Capability Centres are offices set up by big companies from around the world in different countries. They handle important tasks like customer service, IT support, and research.
Vacancy rates -: Vacancy rates show how many office spaces are empty and available for rent. A decline in vacancy rates means more offices are being used and fewer are empty.
