Office rental values have risen sharply in major Indian metros over the past two and a half years, according to real estate consultant Anarock. The report cites strong demand for premium office spaces as businesses return to physical workplaces.

In the Mumbai Metropolitan Region (MMR), average office rent climbed twenty-eight per cent to Rs 168 per square foot, up from Rs 131 in 2022. Hyderabad followed with a rise of twenty-four per cent to Rs 72, while Delhi-National Capital Region (NCR) posted a twenty per cent increase to Rs 110.

Bengaluru rents rose sixteen per cent to Rs 95 per square foot, while Pune and Chennai saw moderate growth of eleven point one per cent and nine point one per cent respectively. Current rents in these cities stand at Rs 80 and Rs 72.

Anarock noted that United States-based firms account for forty-five per cent of India’s office leasing, with a significant share in MMR’s banking and financial services sector.

The firm added that the post-pandemic rebound and appetite for Grade A spaces are driving the surge, despite global uncertainties.

Source: PTI