Office Rent Surges: Rs 100/sq ft Mark Crossed in Top 6 Cities

New Delhi, Oct 23 (PTI) Weighted average rental of office space across six major cities rose 2 per cent in the last five years to Rs 101.3 per square feet a month, breaching the pre-COVID level, according to Colliers India.

Real estate consultant Colliers India data showed that the weighted average office rent in 2019 stood at Rs 99.5 per square feet across six major cities.

The rental fell to Rs 97.1 per square feet in 2020, when office demand was severely impacted due to the global outbreak of COVID pandemic.

Rentals declined further to Rs 94.8 per square feet in 2021 due to the second wave of the COVID pandemic, impacting the demand for office space further.

Office demand revived in 2022 post-pandemic and as a result, weighted average rentals did not fall and almost remained flat at Rs 94.9 per square feet.

In 2023, the weighted average rentals grew to Rs 96.5 per square feet across six cities with further improvement in demand and return of employees to workplaces.

The weighted average rentals have now surpassed the 2019 level to breach the Rs 100 per square feet mark.

Among cities, the average rental in Mumbai is currently Rs 151.6 per square feet, followed by Delhi-NCR Rs 105.9 per square feet, Bengaluru Rs 96.7 per square feet, Pune Rs 81.6 per square feet, Chennai Rs 77.8 per square feet and Hyderabad Rs 76.7 per square feet.

Weighted Average Quoted (WAQ) Rents are in rupees per square feet per month for warm shell offices and do not include Common Area Maintenance (CAM) or taxes. For 2024, data is as of Q3 2024 end.

Premium flex office space operator Ananta Karma Tattva India Pvt Ltd founder and CEO Nidhi Marwah said, "With demand and supply almost rivalling each other, the Indian commercial real estate should also gear up to deliver an office that is an immersive and experiential workspace even as consumer preference shifts from price sensitivity to value consciousness.