According to a study released by Knight Frank, the Indian cities of Mumbai and Bengaluru have recorded the fastest growth in office property rentals in the entire Asia Pacific region this year. With a 11 percent and 7 percent increase in the fourth quarter of 2022, rentals are expected to be buoyant and grow in a similar trajectory even in the 2023. While rental rates increased in Mumbai and Bengaluru, rentals in the National Capital Region remained steady without any significant rise in yields. NCR recorded the highest occupancy cost as almost $79 per square foot, followed by Mumbai at $71 per square foot and Bengaluru at $37 per square foot.
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According to a study released by Knight Frank, the Indian cities of Mumbai and Bengaluru have recorded the fastest growth in office property rentals in the entire Asia Pacific region this year. With a 11 percent and 7 percent increase in the fourth quarter of 2022, rentals are expected to be buoyant and grow in a similar trajectory even in the 2023. While rental rates increased in Mumbai and Bengaluru, rentals in the National Capital Region remained steady without any significant rise in yields.
Following closely behind Mumbai and Bengaluru are the cities of Auckland at 5.9 percent and Singapore and Bangkok both at 5.5 percent. In terms of occupancy cost of prime office markets, Hong Kong continues to remain on top at $174 per square foot per year for the last quarter of 2022. Back home NCR recorded the highest occupancy cost as almost $79 per square foot, followed by Mumbai at $71 per square foot and Bengaluru at $37 per square foot.
Experts believe the office market has experienced a robust recovery from the pandemic and will continue to grow positively in the coming year. An indication of positive times ahead is that the country has been able to clock in the second-best historic year for demand in office spaces which resulted in higher rental yields across multiple cities. While global markets have slowed down owing to inflation, the Russia-Ukraine war, and a general liquidity crisis, things back home seem to be much more optimistic.
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