Bengaluru CBD outperforms Asia-Pacific office market; Delhi’s CP & Mumbai’s BKC ranked 7th& 11th
Bengaluru’s CBD sees highest 17.6% YoY growth in office rentals in Q3 2019. Connaught Place in Delhi sees 4.4% YoY rental growth; Bandra Kurla Complex in Mumbai records 2% rise. Knight Frank’s Asia-Pacific Prime Office Rental Index rises 1.8% YoY to 157.3. Of the 20 cities tracked by the index, 12 recorded either stable or increased quarterly rents; two less than the 14 reported in the previous period. India and Australia only two countries in Asia Pacific that saw rentals grow or stabilise on a quarterly basis in Q3 2019. Office market in India continues to be robust despite sluggish economic growth, with international property consultant Knight Frank in its recent report Asia-Pacific Prime Office Rental Index Q3 2019, showing that the Central Business District (CBD) of Bengaluru, comprising areas such as MG Road, Infantry Road and Residency Road, has registered the highest year-on-year rental growth in the Asia-Pacific region at 17.6% in July to September quarter this year (Q3 2019). A resurgence in IT/ITeS sector hiring since the first half of 2019 (H1 2019) and increased activity by manufacturing companies kept demand buoyant in Bengaluru CBD. New and higher priced stock coming online in the CBD along with higher rentals being charged by renovated properties also caused rentals to rise. Bengaluru was followed by the CBDs of Melbourne and Bangkok at the 2nd and 3rd ranks, with a YoY office rental growth of 15.5% and 9.4%, respectively. The CBDs of Connaught Place in National Capital Region (NCR) and Bandra Kurla Complex (BKC) in Mumbai were the 7th and 11th fastest-growing prime office markets in the Asia-Pacific region, respectively, with a comparatively modest 4.4% and 2% YoY rental growth in Q3 2019. In terms of rentals, Hong Kong, with a monthly rental value of USD 206.6 per sqm, was the most expensive office market in Asia-Pacific in Q3 2019, followed by Tokyo (USD 110.9 per sqm) and Singapore (USD 80.5per sqm). The CBDs of NCR and Mumbai were ranked as the 5th and 7th most expensive prime office markets in Asia-Pacific, with monthly rental values of USD 51.8 per sqm and USD 46.2 per sqm, respectively.
Tags : News/Views Bengaluru Delhi BKC Connaught Place Australia Asia Pacific India Hong Kong NCR Bengaluru CBD National Capital Region Bandra Kurla Complex CBD NCR office market