The office rentals in Hyderabad rose maximum by 9 per cent during July-September period on strong demand but rents dropped in the national capital region (Delhi-NCR) marginally, according to property consultant JLL India.
Rentals for office spaces in Hyderabad, Bengaluru and Pune, which are IT/ITeS dominated cities have witnessed rental growth because of strong demand and low vacancy.
Office rentals in Hyderabad rose to Rs 56.20 per sq ft from Rs 51.50, while in Pune rents increased to Rs 68.17 from Rs 64.81. The city has seen 4 million sq ft leasing of Grade A space.
"The continued expansion by IT/ITeS occupiers combined with increasing interest from large co-working occupiers like WeWork led to a substantial increase in the rental values. Hitec City drove the rental values with select projects commanding higher rentals when compared to the average market rates. As a result, average rents increased by 9 per cent on a year-on-year basis," JLL said on Hyderabad market.
In Bengaluru, office rentals increased 6 per cent to Rs 72.93 per sq ft per month in the third quarter of 2019 calender year from Rs 68.83 a year-ago.
Kolkata saw 3 per cent rise to Rs 52.14 from Rs 50.83, while Chennai witnessed 4 per cent rise to Rs 59 per sq ft from Rs 57.
Monthly office rentals were marginally up 1 per cent to Rs 123.87 from Rs 122.76.
Among seven cities, only Delhi-NCR reported one per cent drop in rental to Rs 77.25 per sq ft per month from Rs 77.86 in the year-ago period.