Third highest office rental growth in Bengaluru
According to a report from independent property consultancy Knight Frank, the prime office space rentals of Bengaluru are expected to rise the third fastest in the world in 2019
BENGALURU: According to a report from independent property consultancy Knight Frank, the prime office space rentals of Bengaluru are expected to rise the third fastest in the world in 2019.
Behind Bengaluru is New Delhi, with an estimated 6.5% growth. The annual report, which evaluates 33 cities, says there will be a shift in focus for property investors as they respond to a more uncertain global economy and the rising cost of debt.
Shishir Baijal, chairman and managing director at Knight Frank India, had said that “Commercial segment continues to show growth in 2019, much like the year past when leasing activities breached 46 million sq ft (in India) and touched a historic high. However, the supply side has not been as robust, keeping rental growth positive at the same time. This rental growth is also the prime reason for increased interest from institutional investors in acquiring income yielding assets in the commercial segment.”
William Beardmore-Gray, the head of occupier services and commercial agency at Knight Frank, said occupiers face two contradictory pressures in 2019. “The geopolitical threats, like Brexit and the US/China trade war, make it difficult for firms to plan the future. However, business pressures to expand market share, recruit talent and enter new markets, are pushing them to address their property needs,” he said.
“Limited supply of new offices, following years of under development, mean that many occupiers will feel compelled to enter the market in 2019, and acquire space before someone else takes their preferred option for a future headquarters building,” he added.