See examples of office space to rent in Delhi here
See examples of office spaces for rent in Mumbai here
Supply in out-lying towns and the suburbs of the two great cities has been strong in recent months but very few new office blocks were added to either the Delhi or the Mumbai skyline during 2010, CB Richard Ellis reports.
Overall office space absorption in India hit 32 million sq ft in the final quarter of 2010 but demand continues to increase in the country’s seven main business districts, namely those in Delhi, Mumbai, Pune, Kolkata, Hyderabad, Chennai and Bangalore.
Some businesses are moving their operations to the outskirts of the main Indian cities, where supply of office space is strong and where rents are relatively cheap but, in general, CBD space remains highly sought after as the Indian economy continues its recovery.
“New economy sectors like telecommunications, pharmaceuticals, besides banking and financial services, led the overall demand for office space [last year],” said CB Richard Ellis’ managing director in India, Anshuman Magazine.
“We believe the Indian office market will continue to see increased transaction volumes consequently leading to higher absorption levels in the medium term,” he added.
According to CBRE’s assessment, there could be an oversupply of office space in the Indian suburbs, which would result in downward pressure on rents in these areas in the coming months.
Earlier this month, the network services company D-Link opened a 10,800 sq ft office space in Mumbai to enhance its presence in Asia and India in particular.
Editor’s notes: In Q1 of 2023, in Mumbai, 1 million square feet of new office space was added to the market which represented a 73% year-on-year increase and took the total stock to 114.2 million square feet.
There was 1.3 million square feet of gross absorption in the same quarter and this represented a 32% year-on-year decrease but an 8% quarter-on-quarter increase.
Across all Mumbai submarkets, vacancy rates were 17.9%.
Office space rental rates ranged from 50 INR per square foot per month in submarkets such as Thane and Navi Mumbai up to 500 INR per square foot per month in the New CBD BKC.
Office rental rates in Central Mumbai were 160 – 225 INR per square foot.
In Delhi and the Indian National Capital Region (NCR), in Q1 of 2023, 1.3 million square feet of new office space was added to the supply representing a 24% YOY increase and took the total stock to 138.9 million square feet of space.
There was 3.4 million square feet of gross absorption in the same quarter and this represented a 26% year-on-year increase and was the same level as the previous quarter.
Across all Delhi-NCR office space submarkets, vacancy rates were 22.1%.
Office space rental rates in Delhi ranged from 30 INR per square foot in NOIDA for example, excepting NOIDA Sector 62 which commanded 50 to 65 INR, up to 425 INR in the Delhi CBD.
In Gurugram CBD, office space to rent costs between 115 – 118 INR per square foot.