Delhi-NCR is the sixth most expensive market among Asia Pacific’s prime office markets with an annual occupancy cost of $78.4 per square foot during the July-September period, according to Knight Frank.
Occupancy cost includes rent, local taxes and other charges.
Real estate consultant Knight Frank has released its Asia-Pacific Prime Office Rental Index for Q3 (July-September) 2023.
Hong Kong SAR continued to be APAC’s most expensive office market during the quarter with an occupancy cost of $164.7 per square foot per year.
Mumbai is the ninth most expensive commercial market in the APAC region with an annual occupancy cost of $70.5 per square foot.
Occupancy cost of prime office space in Bengaluru was $36.1 per square foot per year and the city was ranked 19th out of 23 cities tracked across the APAC region.
Singapore was the second most expensive followed by Sydney, Tokyo and Seoul. Beijing ranked seventh, Ho Chi Minh City eighth and Shanghai 10th.
“Demand for office space in India’s largest occupier markets remained strong with over 7,00,000 square metre of leases sealed during the quarter,” the report said.
“Heightened activity by occupiers setting up Global Capability Centres (GCC) constituted the majority of demand,” it added.
While transaction volumes have grown, the consultant said that rental levels remained stable across its three largest occupier markets as landlords focused on raising occupancy levels.