Bengaluru’s CBD pips Connaught Place, BKC in office rental growth: Knight Frank Report
According to the Knight Frank Asia-Pacific Prime Office Rental Index, three Indian metros cities led by Bengaluru were among select global cities that saw sharp annual appreciation in office rents during the second quarter of 2017. The index compared rent hikes at prime office markets across 20 global cities rose by 1.2% in the quarter ending June 2017.
Despite the initial jitters of demonetisation, the key office markets in Delhi, Mumbai and India’s IT capital saw healthy surge in office rentals on a year-on-year basis. While Bengaluru recorded 4, established central business districts such as the highest among other key CBDs in India. Connaught Place in Delhi saw 2.2% rise and Bandra-Kurla Complex in Mumbai witnessed 2% rental growths in rents in the June ending-quarter of 2017.
Samantak Das, Chief Economist and National Director-Research, Knight Frank India, said, “Prime business districts in the three Indian metros have seen robust rental growth courtesy strong demand and limited vacancies. This scenario is expected to remain for a year owing to a supply crunch of new office space.”
“Despite the global pressures on the IT/ITes sector triggered by automation and limitation in demand for business the technology-driven Bengaluru market has performed well and it expected to do even better. But prime office assets in Mumbai and Delhi are likely to see a slower growth trajectory having already scaled high-rental values,” Das added.
Phnom Penh topped the chart in the second quarter with 4.2% increase, Bangkok the erstwhile topper saw its first decline after close to three years in quarter ending June 2017.
According to Knight Frank, over the next 12 months rents in 15 cities out of the 20 markets will either remain steady or increase.