BENGALURU: Bengaluru has emerged as one of the top three cities in India’s office rental market, recording a 12-year CAGR of 5.3%, the third largest increase across tier-1 cities, according to the first edition of IIMB-CRE Matrix Commercial Property Rental Index (CPRI).
The city also reported remarkable consistency, with positive rent growth in 44 out of 50 quarters, the highest among all tier-1 cities. Released by Indian Institute of Management Bangalore (IIM-B), in collaboration with CRE Matrix, the 2024 index is India’s comprehensive analysis of rental trends in the office real estate sector.
The index is based on actual lease transaction data and focuses on Grade A/A+ office properties across 10 major cities, including Bengaluru, which accounts for a significant share of the country’s premium office stock.
For Bengaluru, key findings from the index reflect the city’s solid and sustained growth in the office rental market. Over the past 12 years, Bengaluru has witnessed a steady increase in rental rates, with Whitefield, South Bengaluru, and the Outer Ring Road emerging as the top-performing macro-markets.
Moreover, Whitefield, South Bengaluru, and the Central Business District are highlighted as the largest contributors to Bengaluru’s growth trajectory. Bengaluru’s office rental market also recorded a consistent performance, with the city registering its largest single-quarter increase of 4% in Q3 2013. Furthermore, the city has maintained an Advance/Decline Quarters Ratio of 7, indicating that rental growth has been consistent and positive across multiple quarters.