Delhi’s Connaught Place has recorded the second highest quarterly rental growth among 20 Asian markets, according to this year’s Knight Frank Asia-Pacific Office Rental Index Q-3.
The index revealed that among India’s central business districts (CBDs), Connaught Place in central Delhi recorded 2.1% rise in prime office rentals between Q2 and Q3 – the second highest only after Bangkok, which topped the index with rental appreciation of 4.4% in the same period.
In fact, with sustained demand, no negative rental price changes have been reported in the Capital since March, ending quarter of 2014.
Further, despite 200,000 sq. m. of new supply hitting Bangalore’s CBD, the tech hub witnessed rental rise of 1.4%. While rental values in Mumbai’s Bandra Kurla complex remained steady, vacancy levels dropped lower and limited new supply entered the market.
Upward trend
The 12-month forecast, however, shows increase in office space rents for all the three CBDs. “The prime office rentals are showing an upward trend. These markets are generally driven by non-IT sectors. Quality supply is limited and we do see the upward pressure on rentals to in the coming 12 months,” said Dr. Samantak Das, chief economist, Knight Frank India.
