Delhi-NCR Is tenth Most-Expensive Commercial Realty Market in Asia-Pacific: Knight Frank

Delhi-NCR is the tenth most-expensive industrial actual property market within the Asia-Pacific (APAC) area, in keeping with Knight Frank’s Asia-Pacific Prime Office Rental Index for Q2 2022. The annual prime headline lease of economic workplace area within the metropolis was recorded at $51.6 (Rs 4,078) per sq. ft a yr.

Hong Kong SAR continued to be Asia’s most costly workplace market with an annual lease of $175.4/sqft per yr, in keeping with Knight Frank. It added that Bengaluru recorded the best annual workplace rental progress within the APAC area within the June 2022 quarter at 12.1 per cent, adopted by Mumbai at 7 per cent year-on-year.

The APAC workplace rental index registered a progress of 1 per cent quarter-on-quarter (qoq), after gaining for 2 consecutive quarters. The general index is up by 2 per cent year-on-year. Of the 23 cities tracked by Knight Frank’s Asia-Pacific Prime Office Rental Index, 17 cities recorded secure or growing rents within the second quarter of the calendar yr 2022, as in comparison with 21 within the earlier quarter.

Shishir Baijal, chairman and managing director of Knight Frank India, mentioned, “As the economy stabilizes after the pandemic, there is a rise in new hiring across most industries along with a move towards a return to the office, which is propelling demand for offices in India. The Indian office market witnessed a strong leasing trend that continued into Q2 2022 with Bengaluru leading in transaction volumes. With its unique position, India can expect its key driving sectors such as IT/ ITeS to continue to grow despite global headwinds.”

Bengaluru, with a rise of 12.1 per cent year-on-year, was the best-performing prime workplace market within the APAC area when it comes to rental progress in Q2 2022 as in comparison with the final yr. The rental worth within the metropolis is projected to rise throughout the next 12 months. With the twenty second place on APAC Prime Office Rental Index, town finds itself as one of many least costly prime workplace markets in APAC area. The prime workplace lease of town was recorded at Rs 1,620/sqft/yr.

In Mumbai, the prime workplace lease was recorded at Rs 3,622 per sq ft per yr and it was the eleventh most costly industrial market within the APAC area. The prime workplace market of town grew 7 per cent yoy after three quarters of stagnation. The rental worth is predicted to extend over the subsequent 12 months.

Tim Armstrong, international head (occupier technique and options) at Knight Frank, mentioned, “As we move into H2 2022, we expect utilization rates to increase as office re-occupancy rates continue to nudge upwards. While hybrid working is here to stay, adoption in the region will likely be more gradual with most occupiers expected to embrace an office-first approach; work culture in most of the region will also tend to tilt strategies towards those that continue to emphasize the importance of the centralized office.”

He added that as occupiers orient and pilot workspace design round such methods, it can facilitate, and consequently, bolster a return to the workplace. “APAC is still in a relatively good position to handle the volatility in the short term despite the multiple headwinds in the macro-environment. Leasing momentum is expected to remain more resilient as economies recover from the pandemic.”

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