New Delhi: 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 central business district (CBD) of Bengaluru registering the highest year-on-year rental growth in the Asia Pacific region at 17.6% in July to September quarter this year.
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 comprising areas like M G Road, Infantry Road and Residency Road.
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 second and third ranks with a year-on-year 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 seventh and 11th fastest-growing prime office markets in the Asia Pacific region respectively with a comparatively modest 4.4% and 2% year-on-year rental growth in Q3 2019.
In terms of rentals, Hong Kong with a monthly rental value of 206.6 US dollars per square metre was the most expensive office market in Asia Pacific in Q3 2019 followed by Tokyo (110.9 US dollars per square metre) and Singapore (80.5 US dollars per square metre).
