Mumbai, Nov 16 (IANS): The prime office rents in Delhi-NCR, Mumbai and Bengaluru remained stable in the July-September period, while Mumbai and Bengaluru saw year-over-year (YoY) increases of 5 per cent and 3 per cent, respectively, driven by strong occupier demand and limited new supply, according to a report on Saturday.

Prime office rentals in Delhi-NCR, Mumbai, and Bengaluru remained robust year-on-year, and rental rates are expected to stay stable over the next 12 months. Delhi-NCR currently is the sixth most expensive office space rental market across the Asia-Pacific region, according to a Knight Frank report.

In Q2 and Q3 2024, combined transaction volumes across these three markets hit consecutive all-time highs. This growth is largely attributed to global capability centres (GCCs) and India-focused businesses.

The surge reflects optimism about India’s economic future, its rich talent pool, business-friendly regulations, and the ongoing growth of its vast consumer markets., said the report.

“The resilience of the Indian economy continues to attract strong global corporate interest, as reflected in the sustained demand across India’s major office markets,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

“This positive outlook, supported by consistent physical occupancy, steady rent levels since 2022, and rising demand in 2024, underscores our confidence in the sustained strength of the Indian office market in the near to medium term,” he added.

In Q3 2024, Bengaluru saw the largest volume growth, up 158 per cent (on-year). Bengaluru's standing as a GCC hub was further supported by the fact that 62 per cent of the space traded in the city was from GCCs. The majority of Mumbai and NCR's business volume was made up of companies that dealt with India.

In Mumbai, the prime office rent was recorded at Rs 317 per square feet per month. In Bengaluru, it was Rs 138 per sqft per month and in Delhi-NCR, it was Rs 340 per sq ft per month.