The country’s main office markets in Bengaluru, the National Capital Region (NCR) and Mumbai are expected to remain stable in terms of rental value over the next 12 months, according to a report by international real estate consultancy Knight Frank.
The report titled – Asia-Pacific Prime Office Rental Index – further showed that rental growth in the third of calendar year 2021 was largely stable.
Knight Frank forecast decelerations in falling rents in the APAC (Asia-Pacific) region to continue through the end of the year.
The report notes that Bengaluru’s Central Business District (CBD), comprising areas such as MG Road, Infantry Road and Residency Road, saw no change in rentals in the third quarter of 2021 compared to QoQ against a decline of 3% in Q2 2021. While office rents at Connaught Place in the National Capital Region (NCR) and BKC region of Mumbai saw a stable price change in Q3 2021 from -1.0 % for NCR and -1.9% for Mumbai during the second quarter of 2021.
Shishir Baijal, President and CEO of Knight Frank India, said: âIndia has reached the 100 crore vaccination mark, the country is gradually returning to a more normalized working environment. Many companies, including those in the tech industry, have started a ‘return to the office’ and are now looking to sign office leases. “
âThe work-from-home model will continue to exist; however, hybrid work solutions will emerge as a more preferred option. The demand for office space is expected to increase due to pent-up demand and the hiring of new staff that has taken place over the past 12-18 months, “he added.
According to the Asia-Pacific Prime Office Rental Index, Taipei is the only city expected to experience an increase in office rental value in the APAC region over the next 12 months. Of the 23 cities tracked by the index, 14 recorded stable or increasing rents in the last quarter, compared to 9 of 20 cities compared to the previous quarter.
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