‘B’luru to see 6.6% office rental growth’

BENGALURU: Bengaluru is set to witness 6.6 per cent office rental growth in 2019, third highest globally after Melbourne and Sydney, according to real estate consultancy Knight Frank report titled ‘Global Outlook 2019’.

According to the report, the city, which saw a prime rental value of Rs 125 per square foot per month last year, is expected to see a growth in rental value in the 6.6 per cent range year on year, primarily on account of low Grade A supply in prime markets.

Bengaluru (13.2 per cent ), Mumbai (11.5 per cent ) and Delhi (10.1 per cent ) will be the ‘Global Hotspots’ in terms of office rental growth with forecasts by 2021, says the report. However, the rate is slated to improve in New Delhi and Mumbai from 16.5 per cent  (2018) and 19.8 per cent (2018) to 15 per cent (2021) and 14 per cent (2021) while Bengaluru will remain the same at 3.2 per cent.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “ The supply side has not been as robust, keeping rental growth positive at the same time. The trend of rental growth in prime markets is expected to continue in 2019 for prime Bengaluru and New Delhi markets, due to continued supply crunch. Mumbai is however expected to see stable rentals in 2019 with an outlook of marginal rental growth due to anticipated supply for 2019 in the prime market.”