Where are offices more expensive: Delhi or Mumbai?
What's the story
A recent report by the Indian Institute of Management-Bengaluru (IIM-B) and CRE Matrix has revealed a significant increase in premium office space rents across Tier-1 cities in India. The "Commercial Property Rental Index (CPRI)" report showed that Delhi witnessed the highest surge with a whopping 16.4% increase from last year. Mumbai saw a quarterly growth of 3.6%, confirming its position as India's most resilient office market.
Market performance
Gurugram, Navi Mumbai also show impressive growth
The report also highlighted Gurugram's strong performance with a 3.2% increase in office rents over the last quarter and an 8.1% rise from last year. Navi Mumbai recorded the highest three-year CAGR (Compound Annual Growth Rate) of 9%, indicating its rapid growth in this sector. The study covered 10 major cities, including Bengaluru, Hyderabad, Mumbai, Gurugram, Pune, Chennai, Noida, Navi Mumbai, Delhi, and Thane, collectively accounting for over 90% of India's institutional-grade office stock.
Emerging markets
Chennai's northern suburbs see highest QoQ surge
Chennai's northern suburbs witnessed a whopping 9.8% QoQ surge in office rents, the highest in India this quarter among micro-markets. Bengaluru's Whitefield area also saw an 8% increase over the last quarter, maintaining its position as India's top rental index value (243). These trends indicate that tenant demand is spreading beyond traditional business hubs to emerging micro-markets like these two areas.
Market leaders
NH-48 prime tops in NCR, followed by Suburban Noida
In the National Capital Region, NH-48 Prime has emerged as Gurugram's top-performing micro-market with a 10.1% CAGR and an annual increase in office rents of 16%. Suburban Noida also performed well with an 8.7% CAGR and a 9.9% annual growth in office rentals. These figures show that these areas are becoming increasingly popular among businesses looking for premium office spaces.