As per a report, with a rental of $88.8 per square metre (sqm) per month, Connaught Place market in Delhi has ranked as the third most expensive office market in the Asia Pacific region.

Bandra Kurla Complex (BKC) in Mumbai stood as the fifth most expensive business district in the list of twenty international cities with a rental of $80.1 per square meter per month in the report by Knight Frank, a property consultant which released the report titled 'Asia-Pacific Prime Office Rental Index Q4 2017 on Wednesday.

In the list, Hong Kong topped with a rental of $212 per square meter.

In respect of rental appreciation, Central Business District (CBD) of Bengaluru reported the third highest growth in rent with 5.4% hike in December 2017 on a year on year basis. The rental growth rate was recorded at 5% and 4% respectively for CP and BKC which stood at 5th and 10th spot in the list.

The report suggests that rental growth in CP would plateau while BKC and CBD markets shall see further hike in rental in the coming 12 months time.

The Chief Economist and National director - Research, Knight Frank India attributes the strong growth in rentals across office markets in India to current supply crisis in the country.

In total, the index moved higher by 1.1% on a year on year basis in the quarter ending December of 2017 on the back of healthy economic performance across APAC region.

The report also highlighted that out of the 20 markets, 16 office markets are likely to witness either stability in rentals or appreciation. Technology-related and demand for co-working office space is primarily pushing rentals to a higher side.

With PTI inputs