The Bengaluru commercial property market is the fifth fastest-growing market in the Asian continent as the lease rentals increase by more than 9.4% in the second quarter of 2019.
City’s CBD includes MG Road, Residency Road, Cunningham Road, Lavelle Road, Richmond Road and Infantry Road. This place witnessed the highest yearly growth in the rental values across the Indian property market and the present rental stands at Rs. 125 per sq ft per month.
The recent report by the Knight Frank Prime Office Rental Index shows that Mumbai’s Bandra-Kurla Complex (BKC) and New Delhi’s Connaught Place secured 8th and 12th position at the end of the second quarter. The rental for Indian offices remain consistent in this quarter even after the market witnessed new supply in the first half of 2019 with 23 million sq ft, a 31% year-on-year growth, was provided in this period.
The index tracking rental business of 20 major cities of the Asia-pacific region shows that the IT sector continues to secure the maximum building structures with 35% in the first half of the current year. The report also indicates lesser corporate spending and increasing approach of insourcing. However, this concern is erased after the increase in demand from the co-working operators as the co-working transaction witnessed a hike of 42% year-on-year to 4 million sq ft in the first half of 2019.
Shishir Baijal, Chairman & Managing Director, Knight Frank India said that the office markets of India show an impressive expansion as it took the national and international economic situations in its stride.
In the international cities, Melbourne recorded a highest on-year rental growth at 16% followed by Tokyo at 12%, Bangkok at 10.4% and Singapore at 10.3%.