Office rents increase

Office rents in the country have increased. According to a recent report by real estate consultant Vestian, office rents in seven major cities increased by 4% to 8% last year. The report mentions that there was a significant demand for office spaces due to new businesses and the expansion of companies, leading to a rise in rents.

Delhi topped the list with an 8.2% growth in monthly office rents. Chennai followed with a 7.7% increase, Mumbai with 6.7%, Bengaluru with 4.7%, Pune with 4.5%, Hyderabad with 4.4%, and Kolkata with a 3.8% rise. When looking at rents per square foot, Mumbai has the highest monthly average rent of $1.6 per square foot, followed by Bengaluru at $1.1, Pune at $1, Delhi at $0.9, and Chennai and Hyderabad at $0.8. Pune had the lowest rent at $0.6 per square foot.

The report also highlighted that the growth of office rents in eight major overseas markets has been mixed.

Last year, the average office rent in New York decreased by 1.3%, with the rent being $7.5 per square foot per month. In Shanghai, rents dropped by 6.8%, standing at $2.8 per square foot, and in Hong Kong, rents fell by 6%, reaching $5.9 per square foot. Seattle saw a 1.9% decline, with monthly rent at $4.7 per square foot. However, in London, average office rents increased by 8.6%, with rents standing at $8.6 per square foot per month. In Miami, rents rose by 7.3%, reaching $5.1 per square foot, Boston saw a 1.2% increase with rents at $5.5 per square foot, and Singapore saw a 0.5% rise, with monthly rents at $7 per square foot.

“With India’s large population, a massive consumer base, rapid urbanization, and access to low-cost skilled labor in sectors like technology and finance, international corporate giants are turning to India for office space,” said Srinivas Rao, CEO of Vestian.