Delhi and Mumbai have been listed amongst the most expensive and sought-after office destinations in the world and are ranked above many global hotspots. While Delhi figures among the world’s top-10 most expensive locations for premium office rents, Mumbai also features in the top-20 of the list. According to global reports, Hong Kong tops the list of the most expensive premium office hubs in the world followed by London, New York, Beijing, Tokyo, Shanghai, Delhi and San Francisco.
With rental values as high as Rs 430 per sq. ft. per month, Delhi and the National Capital Region is the most expensive office location in the country. The demand for the region’s office space is led by the services sector with IT-BPM contributing to almost half of the total commercial space requirements. Moreover, the rising trend of start-ups, has also led to a substantial rise in the demand of co-working space across Delhi NCR.
Even as many world economic centers reeled from the effect of global economic headwinds, Mumbai’s office market recorded commendable growth during 2017. Experts attribute Mumbai’s rental growth to steady demand from corporates and limited supply due to space constraint. The financial capital’s rentals are higher than global centers like Los Angeles, Singapore, Paris, Seoul, Sydney, Frankfurt, Chicago and Toronto. In fact, rentals of premium office spaces in Asian-Pacific cities are pegged at an average of USD 111 per sq. ft. every year. This figure is substantially higher than the average premium office space rent in the Americas of USD 85 per sq. ft. per year and Europe of USD 78 per sq. ft. per year.
The commercial real estate (CRE) market in major Indian cities such as Delhi, Mumbai, Bengaluru, Pune and Hyderabad have had a stable run in 2017 and is expected to stay on course. With steady rentals, growing demand for Grade-A space, high absorption and global investor interest, 2018 is also expected to be a good year for the country’s premium office space market.