The Mumbai office market reported a 4 percent quarterly increase in office rent due to growing demand from jobs, as well as traditional finance and IT sectors. This growth is second only to Tokyo in the Asia-Pacific region, since most of the other occupying officers in the region have postponed significant real estate decisions due to increased tensions in trade between the US and China, Knight Frank said today.
After a strong showing in the second quarter of 2018, the Bengaluru office market normalized, recording a quarter-quarter increase of 0.4 percent, while office rent was flat in the National Capital Region, the AP Prime Office rental index report said. for the third quarter.
Looking ahead, rents in Bengaluru are expected to grow steadily, given strong demand and limited supply terms. “The rent in Mumbai grew by 3.9 percent for sustainable demand not only for traditional financial and IT sectors, but also for joint work operations, which were actively expanding in the city.
“Leases in major markets showed a positive trend due to such factors as demand growth and a somewhat limited supply scenario. The space of the office market in Bengaluru and Mumbai not only showed optimistic growth lately, but also strengthened even more, ”said Shishir Bayal, chairman and managing director of Knight Frank India.
“Go ahead, we expect that these factors will help the main commercial markets to remain healthy and increase the rental segment in the region,” he added.
Tokyo recorded the largest increase in this quarter by 5.6%, due to strong housing demand and limited supply. Office rent in Hong Kong increased by 2.7%, Melbourne – by 2.6%, and in Sydney – by 2.5%.
All the other 13 offices at APAC reported a decrease or growth in the first quarter during the quarter. “While we are starting to feel the impact of trade stress on the markets of the Asia-Pacific office, it is expected that reasonable economic conditions will support the demand for the office and ensure a steady growth in rents in the region,” said Nicholas Holt, head of research in Asia – Quiet .