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The country’s top office markets in Bengaluru, the National Capital Region (NCR) and Mumbai are expected to remain stable in rental values over the next 12 months, according to a report by international property consultancy, Knight Frank.

The report titled – Asia-Pacific Prime Office Rental Index – further showed that the growth in rentals during the third of the calendar year 2021 was largely flat.

Knight Frank forecasted that the decelerations in the decline of rents in the APAC region (Asia-Pacific) to continue till the end of the year.

The report noted that the central business district (CBD) of Bengaluru, comprising areas such as MG Road, Infantry Road, and Residency Road, in Q3 2021 registered no change in rentals when compared on QoQ against a decline of 3% in Q2 2021. While office rents in Connaught Place in the National Capital Region (NCR) and BKC region of Mumbai saw a flat QoQ price change in Q3 2021 compared to NCR’s -1.0% and Mumbai’s -1.9% during Q2 2021.

Shishir Baijal, chairman and managing director of Knight Frank India, said, “India has achieved the milestone of 100 crore vaccination, the country is steadily moving back toward a more normalized work environment. Many corporates including those from the technology sector have started a ‘return to office’ and are looking to sign office leases now."

“The work-from-home model will continue to exist; however, the hybrid work solutions will emerge as a more preferred option. The demand for office space is expected to grow due to the pent-up demand and the hiring of new staff that has taken place in the last 12-18 months," he added.

According to the Asia-Pacific Prime Office Rental Index, Taipei is the only city expected to witness an increase in office rental values across the APAC region in the next 12-months. Of the 23 cities tracked by the index, 14 recorded either stable or increased rents in the past quarter compared to 9 of the 20 cities compared in the previous quarter.

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