Bengaluru office market to see stronger rental growth than Mumbai & NCR: RICS report
According to a recent RICS’ India’s report, office rental projections for the next one year continue to point to solid growth across all prime markets. Investment enquiries also increased in the office sector, with the pace of growth, exceeding that of the previous quarter. Office rental market in Bengaluru is expected to see stronger rental growth when compared with other larger markets like Mumbai and the National Capital Region (NCR), said the report.
The report is based on survey conducted among RICS members over a month ending in October. Respondents were asked to compare conditions over the latest three months, with the previous three months and give their views on the outlook.
The report said, “Tenant demand increased at a reasonably solid pace in the office sector with availability of leasable space was more or less unchanged for the second successive quarter.” Meanwhile, landlords opted to increase the value of incentive packages in the office and retail portions of the market. As far as market valuations are concerned, around three quarters of respondents are of the opinion that the commercial real estate market is either at or below fair value currently. This proportion rose modestly when compared with second quarter, when around two thirds of contributors took this view.