Author: KRITTI BHALLA
Three Indian cities — Delhi, Mumbai and Bengaluru — are among the most expensive commercial real estate markets in the Asia-Pacific (APAC) region, according to a recent report by property consultancy firm Knight Frank. These markets may get even more expensive as the rents of commercial properties in these cities are expected to rise in the next 12 months.
Hong Kong SAR continued to be Asia’s most expensive office market with an annual rent of $175.4 per square foot per year.
India’s national capital Delhi NCR is the 10th most expensive commercial real-estate market in the APAC region, with an annual rent of $51.6 per square foot. Delhi was followed by India’s financial capital Mumbai in the eleventh rank, as the commercial property rents stood at $45.8 per square foot per year.
Bengaluru also made it to the list at the 22nd position with an annual rent of $20.5 per square foot. The rental value in all three cities is expected to increase over the next 12 months as transaction volumes are expected to pick up going forward, the report added.
“The Indian office market witnessed (a) strong leasing trend that continued into Q2 2022 with Bengaluru leading in transaction volumes. With its unique position, India can expect its key driving sectors such as IT/ ITeS to continue to grow despite global headwinds,” Shishir Baijal, chairman and managing director, Knight Frank India said.
A report by online property rental platform NoBroker, released last week, also revealed that about 71% of respondents of NoBroker’s Rent Report have already moved to their work cities, while 54% are looking to relocate within the city or to the city they work in the near future.
These relocation activities in the last six months have caused a property crunch in cities like Bengaluru, Mumbai and Pune, the report added. Saurabh Garg, co-founder and chief business officer of NoBroker, noted that the dearth of available property and rising demand had increased the rents by 12% across cities.