Office rentals to increase over next three to twelve months
Office rentals in the cities of National Capital Region, Mumbai and Bengaluru are expected to increase over the next three to twelve months, according to a recent RICS’ India Commercial Property Monitor.
RICS’ India Commercial Property Monitor is a quarterly guide to the trends in the commercial property investment and occupier markets. The guide is based on survey questionnaires sent out to RICS members over a month long period ending 11 April, 2018. Respondents were asked to compare conditions over the latest three months with the previous three months and give their views on the outlook.
Industrial and retail rents are also expected to increase over this period. Demand for office space has increased with 37 per cent of respondents reporting a rise in demand. All three segments of the market (office, industrial, retail) saw demand increase, at an accelerating rate compared to Q4, 2017. Supply of properties for office, industrial and retail is stagnant for the sixth consecutive quarter. Respondents however reported a modest increase in the supply of office space to rent.
Capital values are expected to increase across market segments of office, retail and industrial. Significant increase is expected in price of prime office space, followed by prime retail assets. Secondary markets are expected to see a slightly more modest rise in comparison. The Occupier Sentiment Index increased to +18 in Q1 from +11 in Q4. This is the highest reading since Q1 of 2011.
RICS is a global professional body. They promote and enforce the highest professional qualification and standards in the development and management of land, real estate, construction and infrastructure.