Bengaluru may see highest growth in office rent at 5-7% next year: Knight Frank

  • In New Delhi the prime office rental is expected to grow in the range of 4-6 per cent

Livemint
First Published3 Dec 2022
Thanks to rising demand for office space, average monthly office rentals are also rising across the top cities. (Photo: Hindustan Times)
Thanks to rising demand for office space, average monthly office rentals are also rising across the top cities. (Photo: Hindustan Times)

The office rentals in Bengaluru is expected to grow by 5-7 per cent by next year, which is the highest in the Asia Pacific region, according to Knight Frank India.

Property consultant Knight Frank said that rent growth in the APAC region is expected to moderate in 2023 as corporate occupiers are looking to optimise overheads and generate savings, according to its latest report on 'Asia–Pacific Outlook 2023.

"The steady performance of the Indian office markets seen in 2022 is expected to sustain in 2023," it said.

Bengaluru's prime office rental is expected to grow in the range of 5-7 per cent YoY (year-on-year) in 2023, highest amongst the 24 APAC cities tracked in the report.

Mumbai and New Delhi are the other Indian cities tracked in the report.

In New Delhi the prime office rental is expected to grow in the range of 4-6 per cent YoY followed by Mumbai in the 3-5 per cent YoY in 2023.

The consultant attributed the expected growth in office rentals to a comparatively strong economic outlook, potentially increased outsourcing from the west due to cost constraints and rupee depreciation.

 "While recessionary forces in the west weigh on the global economy, the APAC region and India are expected to remain beacons of growth in an otherwise uninspiring economic backdrop," said Shishir Baijal, Chairman and Managing Director at Knight Frank India.

In housing segment, the report mentioned that Bengaluru's residential price is expected to grow by up to 5 per cent YoY in the next calendar year.

"Consistent growth of startups and unicorns coupled with rising income levels makes the city a strong market in the APAC region," it added.

Mumbai's residential price is expected to grow by up to 4 per cent YoY in 2023.

The residential price in New Delhi is expected to grow in the range of 2-3 per cent in 2023. 

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