Steady Rise in Office Rentals Across India's Top 10 Cities, with Pune Leading the Pack: Report
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Bengaluru, Nov 30 (NationPress) Office rentals have demonstrated a consistent upward trend in India's top 10 cities, with Pune standing out as the frontrunner, achieving a compound annual growth rate of 6.9 percent over the last 12 years, according to a newly launched commercial property rental index by the Indian Institute of Management-Bangalore (IIM-Bangalore) in association with CRE Matrix.
This inaugural index concentrates on Grade A/A+ office assets across the top 10 Indian cities, namely Bengaluru, Hyderabad, Mumbai, Gurugram, Pune, Chennai, Noida, Navi Mumbai, Delhi, and Thane, which collectively represent 90 percent of India's Grade A/A+ office inventory. The index has recorded data for 36 macro-markets within each of these metropolitan areas.
The report indicates that over the past 12 years, the IIMB-CRE Matrix Commercial Property Rental Index (CPRI) has tracked 10 cities across 50 quarters. In 74 percent of instances, the index has shown a quarter-on-quarter increase. Since the second quarter of 2022, post-pandemic, 92 percent of the index instances have reported growth on a quarter-on-quarter basis.
Interestingly, four out of eight quarters recorded an increase in the IIMB-CRE Matrix CPRI for all 10 cities, a trend that has never been observed before in the history of the Indian office market. Moreover, 4 out of 10 cities experienced a rise of more than 5 percent in the 12-Year CAGR of the CPRI, as stated in the report.
The report further emphasizes that Bengaluru registered positive rent growth in 44 out of 50 instances of the CPRI, marking it as the highest among all cities.
The inaugural index, termed the IIMB-CRE Matrix Commercial Property Rental Index (CPRI), was presented at IIM Bangalore, attended by IIMB Director Prof. Rishikesha T Krishnan.
Under the supervision of Prof. Venkatesh Panchapagesan from the Finance & Accounting area and Prof. Soudeep Deb from the Decision Sciences area, doctoral student Kapil Gupta developed the index, which encompasses Grade A and A+ rentals across 10 cities from Q1 2012 to Q3 2024.
Updated quarterly, the index provides detailed insights into both micro and macro-markets, with intentions to broaden its scope to include categories such as green leasing, Grade B and C properties, and warehousing.
