representativeNew Delhi: Despite persistent global headwind in rental and lease activities, Indian cities have surpassed the most important global centers, with the top seven hubs witnessing a growth of 4 to 8 percent, according to a report from Realight Service Vestian.
According to the report, the rental growth in the National Capital Delhi of India registered an increase of 8.2 percent, while financial capital Mumbai saw the rental growth of 6.7 percent.
In stark contrast to large worldwide cities such as New York, Seattle, Boston, Hong Kong and Shanghai, who have witnessed rental loss for the past five years, India witnessed a steady upward movement.
New York’s rental market growth in 2024 compared to 2023 was negative and registered a rental decrease of 1.3 percent. In the meantime, Seattle and Hong Kong also registered a negative rental growth of 1.9 percent and 6.0 percent respectively. China’s most important business Hub Shanghai also registered a DEGROWTH of 6.8 percent.
In the meantime, Mumbai, Delhi and Bengaluru registered the rental growth of 6.7 percent, 8.2 percent and 4.7 percent in 2024 respectively, compared to the previous year.
In particular, although some Western markets, such as London and Miami, booked the increases of 31 percent and 53 percent respectively, the broader global sentiment reflects a delay due to rising vacancy rates and rapidly changing workplace strategies.
Shrinivas Rao, CEO of Vestian, confirms that the decrease in rental prices on the office space on the global market is influenced by the rise of technologies such as generative AI, as well as changes in strategies for office space -user strategies. T
In addition, rents in Indian cities in 2024 increased between 3.8 percent and 8.2 percent compared to the previous year.
India remains resilient, powered by a strong question from the IT sector and Global Capability Centers (GCCs), Rao added.
While worldwide cities continue to see the demand for premium office spaces, the affordability of India and expansion-driven leasing distinguish it. As a cost -effective hub, India is ready for steady growth, the report added.
Speaking of the rental trends in India, RAO further stated that the influx of new companies and company extensions has led to a considerable demand for office spaces in India.
He added that global companies are aggressively looking for office space in India because of the robust economic growth compared to other large economies, rich demographic dividends, large consumer base, rapid urbanization and the easy availability of a competent personnel file at competing rates, especially in technology and finances.
Prime Commercial Hubs such as Mumbai’s BKC and Delhi’s Central Business District (Connaught Place and AREGING Area) Command High Rentals, with average rent 3-4 per square foot per month.
Strong economic activities, upcoming mega infrastructure projects and the expansion of Global Capability Centers (GCCs) continue to stimulate rental valuation in the large cities of India.
While the global markets for office rental cars remain headwind, the office sector of India is the trend with persistent growth of leasing and rental of the office, the report emphasizes.
