With an annual rent of $175.4 sq. ft. per year, Hong Kong SAR remains at the top of Asia’s most expensive office market.
Knight Frank come up with their prime office rental index for the quarter of April-June, in which it is shown that Delhi-NCR has the 10th most expensive commercial property market in Asia-Pacific, with the commercial office space rent collected being $51.6 per Sq.Ft. per year.
The famous Hong Kong SAR continues the legacy of being Asia’s big-budget office market with an annual rent collection of $175.4 per sq.Ft. per year.
With regards to yearly growth, India’s Bengaluru sees the highest percentage increase in prime office rental at 12.1% on a y-o-y basis for the second quarter of 2022. Mumbai gained the highest quarterly change with 7% in prime office rental value. 17 out of 23 cities that were tracked by the index observed firms or increments in rents for the second quarter of 2022, in comparison to 21 cities in the last quarter.
MD and Chairman of Knight Frank India, Shishir Baijal, said:” Post Covid, as the economy sustain, there is an increase in hiring over many industries along with work-from-office attire, which increased the demands of office spaces in India. The Indian office market observed high leasing trends that continued in the second Quarter of 2022, with the highest transaction volumes in Bengaluru, India is expected to grow in sectors such as IT/ITeS despite different trends Globally.
The prime office rent in Mumbai was recorded at `3,622 per sq. ft. per year which is the 11th most expensive commercial market in the Asia-Pacific region. After witnessing three-quarters of stagnation, the prime office market of the city gets bigger by 7% year on year, this is a positive indication of the increase in rental value over the coming 4 quarters.
Bengaluru with prime office rent of `1,620 per sq.Ft. per year, at 22nd position in the index comes up as one the most affordable prime office markets in the Asia-Pacific region. Whereas, Delhi-NCR maintains the firm rental values over the previous four quarters. Seeing forward, transaction values are predicted to lift in the city. All three cities are expected to witness an increase in rental value in the coming quarters.
Source: https://www.financialexpress.com/money/delhi-ncr-10th-most-expensive-office-market-in-asia-pacific-knight-frank/2607378/