Mumbai, Jul 29 (IANS): Delhi-NCR is the fifth most expensive office space rental market in the Asia-Pacific (APAC) region, as transactions across the three major markets in India saw a notable 50 per cent increase in the second quarter (Q2) of 2024, a report showed on Monday.

Prime office rents remained steady in Delhi-NCR, Mumbai and Bengaluru, according to the Knight Frank APAC Prime Office Rental Index.

“The prime office market in Delhi-NCR has sustained rental values consistently over the past six quarters. With a prime office rent of Rs 340 per square ft a month, it ranks as the fifth most expensive office market in the APAC region,” the report mentioned.

Bengaluru retained its position as the leading destination among the three Indian cities, with 4.9 million square feet leased in Q2 2024.

The leadership teams actively encouraging employees to return to office has also positively impacted the transaction volumes in the market, according to the report.

The majority of transactions were driven by India-facing businesses, reflecting a sustained strategic interest in the country’s consumer markets and its skilled labour pool.

India's office space market has seen a surge in global corporate interest, reflecting the country's status as one of the fastest-growing large economies.

“This has led to record-high transaction volumes in the first half of the year 2024, with a 33 per cent rise YoY, driven by Indian businesses and GCCs (global capability centres). Rental rates have remained steady in the three major occupier markets,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

Hong Kong continued to be APAC’s most expensive office market during the quarter.

In Mumbai, the prime office rent of the city was recorded at Rs 302 sq ft a month, ranking it as the eighth most expensive commercial market in the APAC region. In Bengaluru, prime office rent in the city was recorded at Rs 137 sq ft a month.