Commercial real estate rents surge 20% in Bengaluru, Pune, NCR, and Mumbai

A recent Colliers report highlights Asia Pacific occupiers' readiness to pay higher rentals for superior-quality offices, with premiums of up to 20% in select premium micro markets. In India, Global Capability Centres (GCCs) play a significant role, accounting for 37% of overall leasing activity in first quarter of 2024, with Bengaluru and Hyderabad driving around half of leasing and three-fourths of the supply. Despite stable vacancy levels, rental rates have surged by up to 8% year-on-year across key markets.

India's leading office markets have witnessed annual rental increases of 4-8%, propelled by heightened demand and quality office supply. This growth, outlined in Colliers' 'Expert Insights | Asia Pacific Office Markets April 2024' report, follows a pandemic-induced decline and is driven by factors such as talent acquisition preferences, robust economic growth, and evolving market dynamics. Managing Director, Office Services, India, Colliers, Mr. Arpit Mehrotra notes the adaptation of cost optimization strategies by Indian office occupiers, including the embrace of hub-and-spoke models and the exploration of suburban markets offering affordability.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.