In the Asia Pacific region, Delhi-NCR has the tenth highest commercial property costs, according to Knight Frank’s Asia Pacific Premier Leasing Index for the second quarter of 2022. The city’s rent for corporate office space was $51.6 (Rs 4,078) per square metre. . Foot.
According to Knight Frank, at an annual rent of $175.4/sq ft, the Hong Kong SAR remains the most expensive office market in Asia. In the June 2022 quarter, Bengaluru saw the largest rental growth in the Asia Pacific region, at 12.1%, followed by Mumbai, at 7% YoY.
The Asia Pacific office rent index rose 1% q-o-q, continuing a two-quarter streak of growth. The whole index is up 2% from last year. In the second quarter of 2022, 17 of the 23 cities tracked by Knight Frank’s Asia-Pacific Prime Office Leasing Index reported stable or rising rents, down from 21 in the first quarter.
Cheshire Begal, Chairman and Managing Director of Knight Frank Bharat, spoke on the subject as follows: “With the economy stabilizing after the pandemic, there is an increase in new job opportunities in most industries along with a drive to return in order to increase the demand for offices in Bars. .
Strong lease trends are emerging in the Indian office market and continued into the second quarter of 2022, with Bengaluru leading in terms of transaction volume. India can expect continued growth in its core driving industries, such as IT and ITeS, despite global headwinds thanks to its unique location.
About Knight Frank LLP
Knight Frank LLP was founded by John Knight, Howard Frank, and William Routley. It is a residential and commercial real estate advisory agency, set in London in 1896. One of the largest international real estate advisors is Knight Frank, which she shares with her American partner, Chrisa.
Headquartered in London, Knight Frank’s global network has more than 488 offices in 57 different countries and has more than 20,000 employees managing more than US$817 billion (£498 billion) in commercial, agricultural and residential real estate. estate every year.
Previous versions of the company name were Knight and Frank & Rutley. In addition to leading the Knight and Frank & Rutley firms in London and Walton & Lee in Edinburgh, Sir Howard George Frank, an English estate agent, served as President of the Institute of Estate Agents from 1912 to 1914.
When available, official data from the central bank or government statistical office is used to create the Knight Frank Global Home Price Index. The first indication of how the UK housing market is performing can be found in the Knight Frank/Market House Price Sentiment Index (HPSI). The monthly study tracks household attitudes across the country and serves as an early indicator of future changes in home prices.
The Knight Frank Country House Index is a valuation-based index derived from valuations completed by qualified appraisers at each Knight Frank Country House office in the UK. It is compiled on a quarterly basis. The index is based on valuing a wide range of properties across all regions of the UK using actual sales data.
Highlights of the performance of important Indian cities
Bengaluru was the best performing home office market in Asia Pacific in terms of rental growth in Q2 2022 compared to the previous year, increasing by 12.1% year-on-year. It is expected that the next 12 months will see an increase in the rental value of the city. The city is one of the cheapest major office markets in the Asia Pacific region, ranking 22nd in the APAC Prime Office Leasing Index. The rent for the highest office in the city has been calculated to be INR 1620/sqft/year.
The rent for the main offices in the city, which was the 11th most expensive commercial market in the Asia Pacific region, was recorded at INR 3,622/sq ft/year. After three quarters of a recession, the city’s premium office market is up 7% year over year. Over the next 12 months, the rental value is expected to rise.
Delhi – NCR
The rental rates in Delhi’s primary NCR office sector are at the same levels as in the previous four quarters. However, due to the growth in the volume of transactions in the future, the rental value is expected to rise over the next 12 months. The rent for the top office in the city has been calculated to be INR 4,078 per square foot per year.
Tim Armstrong, Global Head of Occupier Strategy and Solutions, Knight Frank, gave an assessment of head office performance in the Asia Pacific region and said, “As we move into the second half of 2022, we expect usage rates to rise as office reoccupancy rates continue to crawl higher. While hybrid business is here to stay, adoption is likely to be more gradual as most occupants are expected to adopt the office approach first.
In addition, the work culture continues to emphasize the importance of the central office. Returning to the office will be easier and supportive if incumbents focus on designing the workspace and test these strategies.