HYDERABAD: Office rental values in Hyderabad rose 8 per cent to '66 per square feet (sq. ft) per month from Rs 61 in the corresponding period last year. Also, Hyderabad surpassed Bengaluru with the highest influx of new office supply in the first half this fiscal, according to data from Anarock Research.
In rental values, Hyderabad is next to Chennai, which saw the values go up ten per cent to Rs 68 from Rs 62, according to the report.
Bengaluru, Pune, and Kolkata each saw 7 per cent annual growth in office rental values in this period, while the Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR) of Delhi registered a 5 per cent jump each. Grade A office space rental value across these cities averaged at Rs 83 per sq ft per month. It was Rs 77.5 in the corresponding period in FY23, the report said.
The MMR, the most expensive office market in the country, saw the monthly average office rental value jump from Rs 130 per sq ft to Rs 136.
"Average rental values across the top seven cities witnessed a 7 per cent growth due to increased construction and input costs. Data indicates that Grade A office rental values averaged at Rs 83 per from Rs 77.5 per sq ft," said Prashant Thakur, regional director and head of research, Anarock Group.
“It was widely anticipated that commercial office space demand in India will see a downturn amid layoffs by several large corporates worldwide, and shrinking business volumes. However, despite all headwinds, office activity remained largely unchanged in the first half of FY 2024 as compared to the corresponding period in FY 2023. New completions saw a five per cent yearly jump in the period and net absorption dropped by just one per cent,” said Thakur.
The report said the mid-to-long-term outlook remains positive, considering that Grade A offices are still available at sub-dollar rents. Bengaluru led in net office absorption among the cities. Sector-wise, IT/ITeS dominated leasing transactions in H1 FY2024. Share of the co-working segment rose from 11 to 24 per cent this year.
