Office rent drops up to 6% in these 4 major cities in Q3: Report

Average office rental fell by up to 6 per cent year-on-year during the December quarter in Mumbai, Chennai, Hyderabad and Kolkata on lower demand for workspace amid the Covid pandemic

PTI
First Published29 Jan 2022, 09:16 PM IST
There were no major changes in rentals across seven cities during the October-December period compared with the previous quarter. . Photo: Abhijit Bhatlekar/Mint
There were no major changes in rentals across seven cities during the October-December period compared with the previous quarter. . Photo: Abhijit Bhatlekar/Mint

Average office rental fell by up to 6 per cent year-on-year during the December quarter in Mumbai, Chennai, Hyderabad and Kolkata on lower demand for workspace amid the Covid pandemic, while it remained stable in Pune and Delhi-NCR, according to Vestian. 

In its quarterly newsletter - The Connect Q4 2021, property consultant Vestian mentioned that the rental rose marginally by 1 per cent in Bengaluru as the office demand in the city remained strong from the IT companies. 

There were no major changes in rentals across seven cities during the October-December period compared with the previous quarter. 

According to the data, the weighted average rental value fell 6 per cent in Kolkata to 45 per sq ft a month during October-December 2021 as compared with the year-ago period. 

The average monthly rental value in Mumbai dropped 4 per cent to 120 per square feet, while Chennai saw a 3 per cent dip to 57 per square feet.

 The weighted average rental value in Hyderabad declined 2 per cent to 61 per square feet. Office rentals in Pune and Delhi-NCR remained stable at 70 and 65 per square feet, respectively. 

"While the first two quarters of the year 2021 saw a cautious office market, with the second pandemic wave impacting occupier decisions, the succeeding quarters saw the market bounce back favourably owing to pent-up demand and strategic growth plans of large corporates," the report said. 

However, the rise of Omicron variant at the year-end led the market to observe relative restraint, it pointed out. 

As per the report, gross office space absorption across these seven major cities rose 8 per cent to 39.61 million square feet in 2021. 

New office supply grew 20 per cent to 39.25 million square feet. Bengaluru continued to lead the way with 28 per cent share of the total absorption in these seven cities, followed by NCR and Hyderabad at 18.4 per cent and 17.6 per cent share, respectively. 

The IT/ITeS sector continued to be the major demand driver of office absorption, though the year saw its share softening by a fair margin. 

The co-working/managed office space segment, on the other hand, strengthened substantially in 2021, accounting for 15 per cent of the total absorption. US-based Vestian has presence in Indian market and is one of the leading property consultants in India. 

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
First Published:29 Jan 2022, 09:16 PM IST
HomeNewsIndiaOffice rent drops up to 6% in these 4 major cities in Q3: Report

Most Active Stocks

Indian Oil Corporation

174.50
03:59 PM | 11 JUL 2024
2.55 (1.48%)

Tata Steel

169.00
03:58 PM | 11 JUL 2024
1 (0.6%)

Bharat Petroleum Corporation

306.60
03:59 PM | 11 JUL 2024
6.25 (2.08%)

Oil & Natural Gas Corporation

304.80
03:57 PM | 11 JUL 2024
6.75 (2.26%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Gujarat Pipavav Port

236.60
03:58 PM | 11 JUL 2024
16.85 (7.67%)

Oil India

551.45
03:58 PM | 11 JUL 2024
38.7 (7.55%)

Mazagon Dock Shipbuilders

5,739.10
03:55 PM | 11 JUL 2024
383.7 (7.16%)

Great Eastern Shipping Company

1,455.65
03:58 PM | 11 JUL 2024
93.9 (6.9%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    73,705.000.00
    Chennai
    74,722.000.00
    Delhi
    73,705.000.00
    Kolkata
    74,722.000.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanMint Shorts