Mumbai has cemented its position as the city with the highest office rent in India, according to the CRE Matrix Quarterly Report for Q3 CY’24. The analysis of Grade A commercial properties across six metropolitan cities reveals Mumbai’s market rent at an impressive ₹146.3 per square foot per month, outranking other metros by a significant margin.
City-Wise Highlights
Mumbai Metropolitan Region (MMR)
- Market Rent: ₹146.3/sq.ft/month
- Passing Rent: ₹131.8/sq.ft/month
- Vacancy Rate: 15%
- Demand (Q3 July-Sep ’24): 3.1 million sq.ft
- Supply (Q3 July-Sep ’24): 1.4 million sq.ft
- Key Areas: Andheri, Eastern Suburbs
Notable Transactions:
- Tablespace, R Square (Andheri): 146,784 sq.ft | ₹158/sq.ft
- Goldman Sachs, KRC The Ascentia: 73,905 sq.ft | ₹280/sq.ft
- LionBridge Technologies, Gigaplex Mindspace (Airoli W): 70,638 sq.ft | ₹58/sq.ft
- Red Brick, Godrej Two: 68,627 sq.ft | ₹170/sq.ft
Bengaluru
With a vibrant tech ecosystem, Bengaluru ranks second in market for Office rent at ₹102.1/sq.ft/month.
- Passing Rent: ₹83.9/sq.ft/month
- Vacancy Rate: 9.7%
- Demand (Q3 July-Sep ’24): 4.9 million sq.ft
- Supply (Q3 July-Sep ’24): 4.8 million sq.ft
Notable Transactions:
- Walmart, Prestige Tech Pacific Park: 682,388 sq.ft | ₹82/sq.ft
- ANZ, Manyata Embassy Business Park: 520,650 sq.ft | ₹96/sq.ft
- Natwest Digital Services, Bagmane Constellation: 370,630 sq.ft | ₹106/sq.ft
- Atlassian India, DivyaSree Greens: 214,585 sq.ft | ₹134/sq.ft
Delhi NCR
Delhi NCR is a close competitor with market rents of ₹101.7/sq.ft/month, though vacancy office rent rates are relatively higher at 21.8%.
- Passing Rent: ₹90.1/sq.ft/month
- Demand (Q3 July-Sep ’24): 3.4 million sq.ft
- Supply (Q3 July-Sep ’24): 0.9 million sq.ft
- Key Areas: Gurgaon, Prime Central, NH-48
Notable Transactions:
- Incuspaze Solutions, Sector 18 Gurgaon: 233,441 sq.ft | ₹58/sq.ft
- Siemens, One Qube: 127,616 sq.ft | ₹103/sq.ft
- Citi, One Qube: 124,088 sq.ft | ₹98/sq.ft
- Nvidia Graphics, Bharti HQ27: 73,048 sq.ft | ₹170/sq.ft
Pune
Pune’s growing IT sector ensures steady demand with market rents at ₹85.5/sq.ft/month.
- Passing Rent: ₹79.3/sq.ft/month
- Vacancy Rate: 12.6%
- Demand (Q3 July-Sep ’24): 2.6 million sq.ft
- Supply (Q3 July-Sep ’24): 2.4 million sq.ft
- Key Areas: Hinjewadi, IT SEZs, IT Parks
Notable Transactions:
- Smartworks, 43 EQ: 613,451 sq.ft | ₹73/sq.ft
- Suzlon, Suzlon One Earth (DE Business Park): 484,665 sq.ft | ₹90/sq.ft
- Deutsche India, Panchshil Business Bay: 246,457 sq.ft | ₹89/sq.ft
- Garfield Health Solutions, Embassy Tech Zone: 177,196 sq.ft | ₹54/sq.ft
Chennai
Chennai’s commercial market remains steady with market rents at ₹78.1/sq.ft/month.
- Passing Rent: ₹71.2/sq.ft/month
- Vacancy Rate: 12.5%
- Demand (Q3 July-Sep ’24): 1.6 million sq.ft
- Supply (Q3 July-Sep ’24): 0.0 million sq.ft
- Key Areas: Southern Suburbs, IT/ITeS Sectors
Notable Transactions:
- Tablespace, Global Infocity Park (SP Infocity): 67,200 sq.ft | ₹94/sq.ft
- Cohnreznick Professional Services, Olympia Technology Park: 56,356 sq.ft | ₹86/sq.ft
- Vivriti Next, Prestige Zackria Metropolitan: 52,692 sq.ft | ₹81/sq.ft
- Sagility India, RMZ One Paramount (First Software Park): 41,753 sq.ft | ₹70/sq.ft
Hyderabad
Hyderabad continues to attract attention with market rents at ₹71.8/sq.ft/month and strong demand in Hitech City and Gachibowli.
- Passing Rent: ₹67.5/sq.ft/month
- Vacancy Rate: 24.9%
- Demand (Q3 July-Sep ’24): 2.8 million sq.ft
- Supply (Q3 July-Sep ’24): 2.2 million sq.ft
Notable Transactions:
- Cigna, Salarpuria Knowledge Park: 425,036 sq.ft | ₹75/sq.ft
- Amgen Technology, RMZ Spire: 265,881 sq.ft | ₹80/sq.ft
- LTI Mindtree, Laxmi Cyber City: 208,666 sq.ft | ₹65/sq.ft
- Apple, Salarpuria Sattva Knowledge City: 71,917 sq.ft | ₹85/sq.ft
Market Trends
The CRE Matrix report reveals steady growth in India’s commercial real estate market, driven by demand from technology companies, co-working operators, and financial institutions.
“This report underscores the resilience of India’s office markets. As businesses expand, cities like Bengaluru and Hyderabad are redefining workplace dynamics, while Mumbai remains the gold standard for prime commercial spaces”.
Source: CRE Matrix Quarterly Report, India Office, Q3 CY’24
Disclaimer: Data pertains to Grade A commercial properties from July to September 2024.
