Delhi-NCR is the sixth most expensive office space rental market across the APAC region, says Knight Frank’s latest Asia-Pacific Prime Office Rental Index for the third quarter of 2023. Meanwhile, Hong Kong SAR maintained its position as the most expensive office market in the region during the same quarter.
The demand for office space in India’s largest occupier markets remained robust, with over 700,000 square meters of office space being leased during the quarter. The majority of this demand was driven by companies establishing Global Capability Centres, compensating for the reduced demand from flexible workspace operators.
Prime office rentals in Delhi-NCR, Mumbai and Bengaluru, continued to exhibit strength on a year-on-year basis, while rental rates for the next 12 months are anticipated to remain steady at their current levels.
When analysed on a quarter-on-quarter basis, the average office rental rates across the region remained relatively stable, with declines observed in the Chinese Mainland markets gradually moderating. This was offset by rental increases in many other developed markets.
Overall, the quarterly report highlights that, in line with the trends in Q2 2023, 15 out of the 23 cities monitored reported either stable or rising office rental rates, mirroring the conditions in Q3 2023.