Bengaluru Office Rent Up 26% in 5 Years: Anarock

New Delhi, Feb 14 (PTI) Bengaluru has witnessed a 26 per cent increase in average office rentals in the last five years across seven major cities to Rs 93 per square feet per month on high demand for workspaces, according to Anarock.

Real estate consultant Anarock, which last year entered into office leasing advisory business, on Friday released data on India's seven major property markets -- Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad and Pune.

Among these seven cities, Bengaluru leads with a 26 per cent rise in average office rentals to Rs 93 per sq ft per month in 2024, from Rs 74 per sq ft per month in 2019.

Monthly office rental rose 25 per cent in Hyderabad to Rs 67 per sq ft in 2024 from Rs 56 per sq ft in 2019

Chennai saw a 20 per cent rise to Rs 75 per sq ft from Rs 60 per sq ft in 2019.

Delhi-NCR saw least average monthly rental growth of 10 per cent to Rs 86 per sq ft in 2024 from Rs 78 per sq ft per month in 2019.

Rentals in Pune rose 19 per cent to Rs 81 per sq ft in 2024 from Rs 68 per sq ft in 2029.

Mumbai Metropolitan Region (MMR) saw 13 per cent growth to Rs 140 per sq ft in 2024 from Rs 124 per sq ft in 2019.

The average office rent in Kolkata grew to Rs 62 per square feet a month from Rs 52 per square feet in 2019.

Peush Jain, MD-Commercial Leasing and Advisory at Anarock, said: “The Southern siblings of Bengaluru, Hyderabad and Chennai have seen the lion's share of office space absorption."

Robust IT infrastructure ecosystem coupled with the availability of skilled workforce has driven demand, supply and rent in these southern cities.

"As India continues to be one of the fastest growing economies, global corporates will look to establish their GCCs for expansion. The start-up ecosystem has again gained momentum and they too will be major drivers of office demand alongside the BFSI sector," Jain said.

Mumbai-headquartered Anarock entered into the office leasing segment in April 2024, expanding its business from housing brokerage, capital market transactions, and leasing of retail as well as industrial and warehousing spaces, among others.

Homegrown Anarock was established by Anuj Puri in April 2017 after serving as the country head for 10 years in an international property consultancy firm. The Group is targeting over 40 per cent increase in revenue this fiscal year to Rs 800 crore, mainly on the back of strong housing demand.