Chennai sees most rise in office rentals, followed by Hyderabad

Bengaluru, 8 December: Office rentals in Chennai grew the most in the first half current financial year as demand for office spaces remain robust.

According to real estate consultancy firm- ANAROCK, Chennai witnessed the highest 10 per cent yearly jump in average monthly office rental values,to Rs 68 per sq ft in H1 of FY24 from Rs 62 per sq ft seen in H1 FY23.

Hyderabad came second in terms of growth in rentals with an 8 per cent yearly rise. The average monthly office rental value during this period rose to Rs 66 per sq ft in H1 of FY24 from Rs 61 per sq ft a year ago.

Another major IT centre, Bengaluru’saverage monthly office rental value stood at Rs 90 per sq ft in H1 of FY24, up 7 per cent over the last fiscal year.

In Pune, the average office rental value stood at Rs 79 per sq ft in H1 FY24, a rise of 7 per cent over the same period last year.

Similarly, Kolkata saw a 7 per cent yearly rise in average monthly office rental value in H1 FY24, reaching Rs 58 per sq ft compared to Rs 54 per sq ft during last year. The city currently has the most economical office rental values among the top seven cities.

"Interestingly, average rental values across the top seven cities witnessed a 7 per cent growth in H1 of FY24 when compared to the same period in FY23, essentially due to increased construction and input costs. Our data indicates that Grade A office rental values averaged at Rs 83 per sq ft per month across the top seven cities in H1 of FY24,"Prashant Thakur, Regional Director & Head of Research at ANAROCK Group said.