Office Space Rents Surge Beyond Pre-COVID Levels in Major Indian Cities

Office space rentals have increased by 2% over five years across major Indian cities, surpassing pre-COVID levels. Data from Colliers India shows a rebound in demand and pricing, with Mumbai leading at Rs 151.6 per square feet. The trend reflects a shift towards value-focused workspaces.

The weighted average rental costs for office spaces across six crucial Indian cities have clawed back to surpass pre-COVID levels, recording a 2% increase in five years to Rs 101.3 per square feet a month, as per data from Colliers India.

According to the real estate consultancy, the average office rent in 2019 was Rs 99.5 per square feet. A noticeable decline to Rs 97.1 per square feet occurred in 2020 due to the global COVID-19 pandemic significantly dampening office space demand. The rental further declined to Rs 94.8 per square feet in 2021 amidst the pandemic's second wave.

However, by 2022, office demand exhibited revival signs, stabilizing rents at nearly Rs 94.9 per square feet. Fast forward to 2023, and rentals climbed to Rs 96.5 per square feet, marking substantial demand recovery as employees returned to workplaces. The trend indicates a shift in consumer preference towards value-based immersive workspaces.

(With inputs from agencies.)