Office rental rates in Hyderabad increased by 8% to Rs 66 per square foot per month, rising from Rs 61 in the same period last year. Anarock Research data revealed that Hyderabad outpaced Bengaluru in new office supply in the first half of this fiscal year.
Following Chennai, Hyderabad ranked next in rental values, experiencing a ten percent surge to Rs 68 from Rs 62, as reported.
Bengaluru, Pune, and Kolkata saw a 7% annual growth in office rental rates during this timeframe, while the Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR) of Delhi recorded a 5% increase each. The average rental value for Grade A office spaces across these cities stood at Rs 83 per square foot per month, up from Rs 77.5 in the corresponding period of FY23, the report stated.
The MMR, recognized as the most expensive office market in the country, observed a rise in the monthly average office rental value from Rs 130 per square foot to Rs 136.
Anarock Group's regional director and head of research, Prashant Thakur, noted, "Average rental values across the top seven cities witnessed a 7% growth due to increased construction and input costs. Grade A office rental values averaged at Rs 83 per square foot from Rs 77.5 per square foot."
Despite concerns about layoffs in large corporates and declining business volumes, office activity in India remained relatively steady in the first half of FY 2024 compared to FY 2023. New completions saw a 5% yearly increase, and net absorption only dropped by 1%, according to Thakur.
The report maintained a positive mid-to-long-term outlook, highlighting the availability of Grade A offices at reasonable rents. Bengaluru led in net office absorption among cities, with the IT/ITeS sector dominating leasing transactions in H1 FY2024. The share of the co-working segment increased from 11% to 24% this year.
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