Three Indian metros led by Bengaluru were among select global cities that saw sharp appreciation in office rents, according to the Knight Frank Asia-Pacific Prime Office Rental Index.

The index compared rent hikes at prime office markets across 20 global cities between the first quarter of 2016 and this year.

Despite the initial jitters of demonetisation, the key office markets in Delhi, Mumbai and Bengaluru saw healthy surge in rentals on a y-o-y basis.

While Bengaluru recorded 4.7 per cent growth, established central business districts such as Connaught Place in Delhi (4.3 per cent) and Bandra-Kurla Complex in Mumbai (3.4 per cent) saw robust rental growths. The rise in rents was remarkable considering that the three cities collectively saw close to 2.4 million sq m of new office space added since the March ending quarter of 2016, the index said.

Samantak Das, Chief Economist & National Director - Research, Knight Frank India, said, “There are disruptions in IT-driven office markets owing to geopolitical changes, automation and industry dynamics. But prime office markets in India appear as bright spots courtesy the inward-looking orientation of the industries driving them. Unlike IT-driven office markets which are linked to global fortunes, the prime office markets in India are driven by the Banking, Financial Services and Insurance (BFSI), manufacturing and consulting sectors.”