Delhi-NCR and Mumbai among top 10 markets across the APAC: Knight Frank

Delhi-NCR and Mumbai are among the apical 10 markets successful Asia Pacific portion (APAC region), driven by request from Global Capability Centres (GCCs) and India-focused businesses, arsenic observed successful Knight Frank APAC Prime Office Rental Index.

Delhi-NCR secured sixth spot successful the astir costly bureau abstraction rental marketplace crossed the APAC region, the latest variation of the Asia-Pacific Prime Office Rental Index for Q3 2024 shows.

Hong Kong peculiar administrative portion (SAR) continues to beryllium APAC's astir costly bureau marketplace during the quarter.

Prime rents successful the NCR remained unchangeable successful the 3rd 4th (Q3) 2024, portion Mumbai and Bengaluru saw year-over-year (YoY) increases of 5 per cent and 3 per cent, respectively, driven by beardown occupier request and constricted caller supply.

In 2nd 4th (Q2) and (Q3) 2024, combined transaction volumes crossed these 3 markets deed consecutive all-time highs. The study noted that the surge reflects optimism astir India's economical future, its affluent endowment pool, business-friendly regulations, and the ongoing maturation of its immense user markets.

In Q3 2024, Bengaluru saw the largest measurement growth, up 158 per cent YoY. Bengaluru's lasting arsenic a GCC hub was further supported by the information that 62 per cent of the abstraction traded successful the metropolis was from GCCs. The bulk of Mumbai and NCR's concern measurement was made up of companies that dealt with India.

Prime bureau rentals successful Delhi-NCR, Mumbai, and Bengaluru remained robust year-on-year, and rental rates are expected to enactment unchangeable implicit the adjacent 12 months. Overall, 16 retired of the 23 monitored cities reported unchangeable oregon expanding rents year-on-year, up from 15 successful Q2 2024.

Notably, Brisbane recorded the highest year-on-year maturation successful Q3 2024, reflecting a affirmative inclination crossed galore markets. The stabilising vacancy rates crossed the portion person declined marginally by 0.2 percent points.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, "The resilience of the Indian system continues to pull beardown planetary firm interest, arsenic reflected successful the sustained request crossed India's large bureau markets. Quarterly transaction volumes person reached grounds highs and are apt to transcend yearly benchmarks successful 2024, portion rental rates stay stable. This affirmative outlook, supported by accordant carnal occupancy, dependable rent levels since 2022, and rising request successful 2024, underscores our assurance successful the sustained spot of the Indian bureau marketplace successful the adjacent to mean term."

The premier bureau marketplace of Delhi-NCR continues to spot rental values support levels seen successful the past 4 quarters, the study observes.

The premier bureau rent of the metropolis was recorded astatine Rs 340/sqft/month, making it the 6th astir costly bureau marketplace successful the APAC region, arsenic per report.

The premier bureau rent of the metropolis was recorded astatine Rs 317/sqft/month and was the 8th astir costly commercialized marketplace successful the APAC region, the study added.

Bengaluru stands 18th connected the database and is 1 of the slightest costly premier bureau markets successful the APAC region. The premier bureau rent of the metropolis was recorded astatine Rs 138/sqft/month. The Knight Frank study added that the rental worth successful the metropolis is projected to stay dependable during the pursuing 12 months.

The Asia-Pacific premier bureau assemblage is poised to stay tenant-favourable successful 2024, it further added. Following the transportation of implicit 12 cardinal sqm of bureau abstraction successful 2024, the proviso pipeline for 2025 is expected to alteration by astir one-fifth, arsenic per the report.