Thursday, June 17, 2021
News

India's prime office rentals expected to remain stable: Knight Frank

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

Mumbai (Maharashtra) | May 12, 2021 2:14:14 PM IST
Despite uncertainty around India's office sector, Bengaluru, NCR and Mumbai markets are expected to remain stable in rental values over the next 12 months, international property consultancy Knight Frank said on Wednesday.

According to its latest report Asia Pacific Prime Office Rental Index Q1 2021, Bandra Kurla Complex (BKC) in Mumbai witnessed a meaningful recovery in office rents to negative 0.8 per cent QoQ during the January to March quarter compared to negative 5.5 per cent in the previous quarter.

The robust recovery can be attributed to improved transaction activity. Knight Frank forecasts the decline in rents to decelerate this year with overall rents expected to decline by 3 per cent in the Asia Pacific region compared to 4.8 per cent decline seen in 2020.

The central business district of Bengaluru comprising areas like MG Road, Infantry Road and Residency Road registered a decline of 3 per cent QoQ in Q1 2021 against a decline of 4 per cent in Q4 2020. Connaught Place in National Capital Region (NCR) office rents saw a flat price change in Q1 2021 compared to negative 1 per cent in Q4 2020.

According to the index, Taipei is the only city expected to witness an increase in office rental values across the A-Pac region in next 12 months. Of the 22 cities tracked by the index, 8 recorded either stable or increased rents in the past quarter compared to 10 in the previous quarter.

For Q1 2021, Knight Frank's Asia Pacific Prime Office Rental Index fell negative 1.2 per cent quarter-on-quarter led by large office markets like Tokyo, Hong Kong and Bengaluru recorded rental decline between negative 3 to negative 2.8 per cent during the same period.

On an annual basis, the overall index was down negative 5.5 per cent year-on-year.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, said the second wave of pandemic and associated regional lockdowns have temporarily delayed occupiers' office re-occupancy plans.

However, control on infection case count with graded regional lockdowns and progress on vaccination drive will act as a market stabiliser in near future.

"Given the strong fundamentals of India office market, despite the near-term uncertainty, occupiers will positively react to any improvement in the pandemic scenario," he said. (ANI)

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
Karnataka to use Israeli technologies to...
BrowserStack, the leading software testi...
Integra Software Services steps up COVID...
Equities trade gap down, Adani Ports tum...
J&K Bank to raise Rs 150 crore by issuin...
Growth of Indian consumer credit market ...
More...
 
INDIA WORLD ASIA
COVID-19: Hyderabad NGO uses technology ...
Lakshadweep Administrator visits Kavarat...
Hoardings backing Cong's Navjot Singh Si...
Kerala Police issues fresh guidelines fo...
Man held by NCB Mumbai for providing bit...
Maharashtra: Officials visit remote trib...
More...    
 
 Top Stories
Argentina reports 25,878 new COVID-... 
Equities trade gap down, Adani Port... 
COVID-19: Hyderabad NGO uses techno... 
COVID-19, ageing population raises ... 
Integra Software Services steps up ... 
Tripura Congress holds protest agai... 
Euro 2020: Flawless Italy cruises i... 
BrowserStack, the leading software ...