Delhi-NCR has been ranked as the sixth most expensive office rental market among Asia Pacific’s prime office markets. According to Knight Frank’s Asia-Pacific Prime Office Rental Index for Q3 (July-September) 2023, the annual occupancy cost in Delhi-NCR is USD 78.4 per square foot. This cost includes rent, local taxes, and other charges. The report also highlighted that demand for office space in India’s largest occupier markets remained strong, with over 700,000 square meters of leases sealed during the quarter. The majority of this demand was driven by occupiers setting up Global Capability Centres (GCC). Although transaction volumes have increased, rental levels in India’s largest occupier markets have remained stable as landlords focused on increasing occupancy levels.

Among the top-23 cities tracked across the APAC region, Hong Kong SAR retained its position as the most expensive office market, with an occupancy cost of USD 164.7 per square foot per year. Mumbai ranked ninth with an annual occupancy cost of USD 70.5 per square foot. Bengaluru, with an occupancy cost of USD 36.1 per square foot per year, was ranked 19th.

Apart from Hong Kong SAR and Mumbai, other cities that made it to the top five most expensive office markets in the APAC region were Singapore, Sydney, Tokyo, and Seoul. Beijing ranked seventh, Ho Chi Minh City eighth, and Shanghai tenth. The report underlined that the demand for office space in India’s largest occupier markets remained strong, with over 700,000 square meters of leases sealed during the July-September period. The consultant also mentioned that the majority of this demand was driven by occupiers setting up Global Capability Centres (GCC). While transaction volumes have grown, rental levels in the three largest occupier markets in India have remained stable as landlords prioritized increasing occupancy levels.