Led by steady interest from both domestic and international companies, Ahmedabad saw one of the highest gains in office rentals at six per cent for the first quarter of calendar year 2012.
According to the latest Asia Pacific (APAC) Office market report from Cushman & Wakefield – that compared the rental values of Central Business Districts (CBD) across Asia Pacific - Ahmedabad's six per cent Q-o-Q gains in office rentals was only preceded by Bangalore, NCR, Jakarta (Indonesia), Shenzhen (China) and Adelaide (Australia) at 18, 14, 11.4, 7.5 and 6.4 per cent, respectively.
"Ahmedabad saw a rental increase of approximately six per cent q-o-q owing to a steady interest from companies – both domestic and international to set up presence in the region; though the average size of office space requirement is restricted compared to other locations," the report stated.
Talking about the reasons for such growth across key markets in Asia, Ravi Ahuja, executive director, Office Transactions, Cushman & Wakefield India said, "CBD locations across most cities of Asia particularly Hong Kong had witnessed a significant run up in rental and capital values over the last year however most Asian markets are currently depicting signs of stability, with some key emerging markets of India still showing growth owing to the sustained demand generated specially from banking and consultancy, automobile, engineering and pharmaceutical sectors."
Nationally, New Delhi - CBD which continues to witness restricted and limited supply, emerged as the most expensive office market destination in India at the end of Q1 2012.
With a rental value of INR 366/sq ft/month and having witnessed a rise of approximately 14% over the previous quarter, rentals in the New Delhi CBD location’s have surpassed rental values prevailing in the Mumbai CBD and Bandra Kurla Complex (BKC)
Meanwhile, rest of the markets across India remained stable with no change to the rental values in the CBD locations. Chennai CBD recorded a rise if moderate 3% while Mumbai, Pune and Hyderabad remained unchanged.
