Bengaluru Overtakes Singapore In Office Rental Growth; 39% Of All Office Rentals In India Grabbed By IT Industry
Bengaluru, defeating Delhi and Mumbai as well, has the best performing office rental market in the whole of Asia Pacific, as noted by a new study.
Commercial business places in Delhi came in second and the BKC in Mumbai stood on the 11th position in the Asia-Pacific regions.
What are the trends of growth in the office rentals of the top metropolitans of India? Find out what the report says, right here!
Bengaluru Defeats Mumbai And Delhi In Office Rentals
Despite the office rentals in Bengaluru being lower than that of Mumbai’s BKC and Delhi’s Connaught Place, the growth of Bengaluru has been clocked to about 17.6%. In fact, this is even more than that of Singapore and Hongkong as well.
According to the Knight Frank Asia Pacific Prime Office Rental Index Q3 2019, the CBD of Bengaluru has recorded the best performance in the whole of Asia Pacific. Mumbai’s Bandra Kurla Complex and the National Capital Region (NCR)’s Connaught Place stand 7th and 11th, with 4.4 per cent and 2 per cent year-on-year rental growth in Q3 2019.
As per reports, in the top eight cities, the IT industry makes up about 35% of the total transaction volume in the first half of 2019. Bengaluru is the highest here, with a 14% rise in rental in the January-June (H1) 2019.
In the latest survey, Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q3 2019, as much as 82 per cent of the real estate stakeholders have revealed that there will be a more positive outlook for the office sector, and there will also be office supply pipeline for the upcoming 6 months.
Here’s Why Bengaluru Tops The Chart of Office Rentals
Shishir Baijal, Knight Frank India Chairman and Managing Director, said, “Office markets in cities like Mumbai, NCR and Bengaluru continue to enjoy healthy rental growth despite the weaker economic sentiment in 2019, mainly due to the rapid expansion witnessed in its IT industry.”
He also revealed that there is a high availability of talent and office assets at surprisingly low rates and this is the primary reason behind multinationals expanding their businesses at rapid speeds. In 2020, Baijal has predicted that the supply is expected ‘over the horizon’, the demand will stay quite steady as the IT sector expands.