Mumbai: Mumbai comes third after Bengaluru and Delhi among cities in the country which have earned the highest prime office rental yields among 34 leading international markets, a Knight Frank report said on Thursday.
The report by Knight Frank, a leading independent global property consultant, further said Mumbai ranks 6th on the Skyscraper Index growth in the last six months, beating leading cities like London, Hong Kong, Tokyo and Dubai in rental growth of office spaces. Business hub Bengaluru has topped the chart with 10 per cent yields, followed by Delhi with 9.20 per cent and Mumbai with 8.50 per cent. Hong Kong has earned the least prime office yields with 2.70 per cent.
In addition, Bengaluru’s Whitefield is the most affordable tech district among 29 global tech hubs in the world, according to the report. Experts at the Knight Frank pointed out that there has been an increase in foreign investment for acquiring rental commercial office spaces.
Samantak Das, chief economist and national director of research at Knight Frank India, cited the example of Amazon acquiring a larger office space at Bengaluru’s Brigade Gateway. “Global cities that are aspirational and successful in having the wow factor are set to see the most dramatic transformation. We have already seen glimpses of the transformation with a shift in the expectations of mainstream occupiers. Today, we see that the office space expectations of mainstream occupiers resembling those of niche sections such as the start-up fraternity or the Googles of the world. The global trend holds true for Indian cities such as Bengaluru and Mumbai,” he said.
Another expert said, “It is also a fairly accepted fact that India is home to some of the most affordable Central Business Districts in the world. The findings of the Global Cities: The 2018 Report reinstates the fact. Bengaluru’s Whitefield is a case in point.”