Mumbai in top ten priciest markets in office rental values in Asia-Pacific region

However, overall leasing volumes fell 4 per cent from a year ago, primarily because of slackness in India where markets cooled as supply volumes dropped sharply, said the report.

Among the regions that did grow, apart from Melbourne and Shanghai, Delhi showed good performance thanks to IT/ITeS, manufacturing and professional services firms. On the other hand, Bengaluru saw the sharpest fall in leasing volumes, the study said.

Mumbai also figured in the top 15 markets when it came to capital value of office space. Capital value growth accelerated to 4.9 per cent from a year ago in the first quarter of 2017, the study said and noted that Mumbai sits behind Auckland and Chinese and Australian cities in the top 15. Delhi-NCR, Chennai and Bengaluru all saw a more plateaued capital value growth and sit outside the top-20 Asia-Pacific markets, it added.

The study also noted that the market is unlikely to see a sharp increase in both office rentals and capital value for the rest of this year.