After a prolonged slump, office rentals in major Indian markets have surpassed 2019 levels, with Mumbai leading the charge. Rentals in the financial capital have risen 6% since 2019, reaching Rs 151.60 per square foot per month. Pan-India rentals averaged Rs 101.30 per square foot per month at the end of September 2024.
However, concerns linger over growth in key markets like Bengaluru and high vacancies in Hyderabad (23%) and Delhi-NCR (20%). Mumbai’s dominance in banking, financial services, and insurance (BFSI) has driven its growth, while Pune has benefited from global capability centres (GCCs) and manufacturing industries.
“Average rentals across all six major markets have breached pre-pandemic levels for the first time in 2024. Although the rental growth will vary across cities, annual increase in average quoted rentals at the end of 2024 is likely to be higher for certain markets like Delhi-NCR and Pune compared to other markets,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.
Despite some concerns, average rentals across six major markets have breached pre-pandemic levels for the first time in 2024.
Source: moneycontrol.com
