Check how office rental values rose in NCR, MMR, Pune, Hyderabad & other cities in H1 FY24

financialexpress.com:

The first half of fiscal year 2024 remained lacklustre for commercial office space activity across the top 7 cities, with both net absorption and new completions remaining largely stagnant compared to the same period last year. New office supply across the top 7 cities rose by a meagre 5% in H1 FY2024 against H1 FY23, and net office absorption saw a marginal yearly decline of 1% in this period.

Prashant Thakur, Regional Director & Head – Research, ANAROCK Group, says, “Interestingly, average rental values across the top 7 cities witnessed a 7% growth in H1 FY24 when compared to the same period in FY23, essentially due to increased construction and input costs. ANAROCK Research data indicates that Grade A office rental values averaged at INR 83 per sq. ft. per month across the top 7 cities in H1 FY2024, while in the corresponding period in FY23, it was approx. INR 77.5 per sq. ft.”

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Notably, Chennai witnessed the highest 10% yearly jump in average monthly office rental values – from INR 62 per sq. ft. in H1 FY2024 to approx. INR 68 per sq. ft. in H1 FY2023. Hyderabad came next with an 8% yearly growth. The average monthly office rental value in the city rose from INR 61 per sq. ft. in H1 FY2023 to approx. INR 66 per sq. ft. in H1 FY 2024.

Bengaluru, Pune, and Kolkata each saw 7% annual growth in office rental values in this period, while MMR and NCR registered a 5% jump each.

* Avg. monthly office rental value in Bengaluru stood at INR 90 per sq. ft. in H1 FY2024, against INR 84 per sq. ft. in H1 FY2023.

* In Pune, the avg. office rental value stood at INR 74 per sq. ft. in H1 FY2023 while in H1 FY2024, it was INR 79 per sq. ft.