Pune News : Office rental value increased by seven percent across top 7 cities in India
Pune News : Office rental value increased by seven percent across top 7 cities in India
By: Pune Pulse
December 7, 2023
Pune: In the first half of the fiscal year 2024, the rental values for office spaces experienced a notable growth of 7 per cent across the top seven cities, as compared to the corresponding period in fiscal year 2023.
During the first half of FY2024, the average rental value for Grade A office space in the top 7 cities reached ₹83 per sq ft per month. This represents an increase from the average of ₹77.5 per sq ft per month recorded during the same period in FY23. Among these cities, Chennai experienced the highest yearly growth of 10 per cent in average office rental values, followed by Hyderabad with an 8 per cent increase.
According to reports, the first half of FY24 saw a notable 7 per cent increase in office rental values across the top seven cities. This growth can be attributed to the rise in construction and input costs. In H1 FY2024, Grade A office rental values averaged ₹83 per sq. ft. per month in these cities, compared to approximately ₹77.5 per sq. ft. in the same period of FY23.
Chennai experienced a significant annual increase of 10 per cent in average monthly office rental values, rising from ₹62 per sq. ft. in H1 FY2024 to around ₹68 per sq. ft. in H1 FY2023. Following closely, Hyderabad recorded an 8 per cent yearly growth, with the average monthly office rental value in the city increasing from ₹61 per sq. ft. in H1 FY2023 to approximately ₹66 per sq. ft. in H1 FY2024, as indicated by the data.
As per the information received, the commercial office space activity in the top seven cities during the first half of fiscal year 2024 was unimpressive. Both net absorption and new completions showed little growth compared to the same period last year.
The increase in new office supply across these cities was a mere 5 percent in H1 FY2024, as opposed to H1 FY23. Additionally, there was a slight yearly decline of 1 per cent in net office absorption during this period.
