The office rental revenue in India varies widely by city, with the larger urban centres having the largest rental income. The split of office leasing income in several of India’s largest cities is as follows:
- Mumbai – Mumbai is India’s commercial centre and the location of some of the biggest companies in the nation. As a result, it has the greatest income from office rentals in the nation. Depending on the location and quality of the office space, Mumbai’s typical monthly rent for a square foot of space ranges from 200 to 400 INR.
- Delhi – Delhi serves as both India’s governmental and commercial capital. The typical monthly rent for an office space in Delhi ranges from INR 100 to INR 250 per square foot, depending on the building’s location and amenities.
- Bengaluru – Bengaluru is the technological capital of India and is home to several start-ups and big businesses. Depending on the location and quality of the office space, Bengaluru’s average monthly rent for a square foot of space ranges from INR 50 to INR 150.
- Chennai – In southern India, Chennai is a significant industrial and commercial hub. Depending on the location and amenities offered, Chennai’s typical monthly rent for office space ranges from INR 40 to INR 100 per square foot.
- Hyderabad – Hyderabad is a burgeoning centre for the pharmaceutical and technology sectors. Depending on the location and quality of the office space, Hyderabad’s typical monthly office rental revenue might range from INR 40 to INR 90 per square foot.
It’s important to note that the quality and location of the office space can have a significant impact on the office leasing revenue in India. The ongoing COVID-19 epidemic has also had a substantial effect on the commercial real estate sector, resulting in reduced rental prices and more office space being available in several locations.
Many companies are seeking for methods to lower their real estate expenditures as the current COVID-19 outbreak continues to have an impact on the commercial real estate sector in India. Switching from traditional office premises to managed office spaces, which provide a more flexible and economical alternative, is one of the tactics being used.
Coworking spaces, usually referred to as managed office spaces, are rising in popularity in India. These locations give businesses the freedom to lease office space on a short-term basis with the flexibility to grow or contract as necessary. They also provide a variety of facilities and services, like high-speed internet, conference rooms, and shared office equipment, which can lower startup expenses for firms.
Additionally, managed office spaces give organisations access to an atmosphere that is more creative and collaborative, which may assist to increase productivity and creativity. Employees have the chance to network and interact with other companies and people by sharing office space, which may result in new business alliances and possibilities.
The development of “smart” office spaces is another trend that is occurring in the Indian commercial real estate industry. These areas are outfitted with cutting-edge technology, including security systems, climate control, and smart lighting that can all be operated remotely via a smartphone app. Through the use of this technology, organisations may lower their energy usage and increase operational effectiveness.
The rising trend of digitization in India, where more companies employ digital technology to enhance their operations, is driving the need for smart office spaces. As a result, the market for smart office space is anticipated to expand dramatically over the next several years as companies search for more efficient and environmentally friendly methods to do business.
In conclusion, as companies adjust to cutting-edge trends and technology, the commercial real estate industry in India is transforming quickly. As organisations search for more adaptable and affordable alternatives, managed office spaces and smart office spaces are growing in popularity. Businesses will need to stay current with the newest trends and technology as the market expands and changes if they want to succeed and compete.