According to the report, CBDs in Bangaluru and Mumbai are likely to see an increase in office rental in 2020.
India’s office market will remain robust despite slow economic growth and are likely to rise in the central business districts (CBDs) rents of Bangalore and Mumbai in 2020, while rents in the CBD are expected to grow, said a report by Knight Frank India that the National Capital Region (NCR) is Still stable.
The Bangalore CBD, which includes areas such as MG Road, Infantry Road, and Residency Road, is expected to see more supply in 2020, while demand is expected to remain stable as the IT sector continues to grow.
First-class office rents across the Asia Pacific region are expected to drop between 0 and -3% in 2020, less than the 0.6% increase in the first nine months of 2019, as demand from tenants continues to decline.
“Office markets in cities like Mumbai, NCR and Bengaluru continue to enjoy healthy rental growth, despite weak economic sentiment in 2019, mainly due to the rapid expansion observed in their IT industry. We expect this trend to continue in these markets, As the demand for office space is also expected to increase in 2020 “.
Bengaluru CBD was the best performing market in the Asia Pacific region in the third quarter of 2019, with rents growing by 17.6%, according to the Night Frank Asia-Pacific office rental index. The CBDs of the Connaught Place in the National Capital Region (NCR) and the Bandra Kurla Complex (BKC) in Mumbai were the seventh and eleventh major markets for offices in the Asia Pacific region, respectively, with relatively modest rental growth of 4.4% and 2% in the quarter.
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