NEW DELHI: The Bengaluru office market is expected to witness a rise in rental values in 2021, while Mumbai and NCR are expected to remain stable, said Knight Frank India on Monday.
“Bengaluru, in particular, has the benefit of existing low vacancies that will enable absorption of much of the upcoming supply. The city also has the advantage of relatively lower rentals compared to global markets and large talent pool that should help in quicker revival of this market as global economies move towards normalcy,” the realty consultant’s report pointed out.
On the whole, however, Asia- Pacific prime office rents are expected to decline (by -3 to 0 per cent) during the next year. Shishir Baijal, CMD, Knight Frank India, said, “The beleaguered residential sectors received a new lease of life during this period and demand saw an unprecedented surge. This has created a sense of optimism in the sector. With news of the mass vaccine for Covid being only month’s away, the office sector is also expecting to see a revival with economic activities opening up worldwide.”The Prime Office rents across APAC region for 2020 fell 4.0 per cent year-on-year.