Bengaluru posts highest growth in office rentals across Asia Pacific | The Financial Express

Bengaluru posts highest growth in office rentals across Asia Pacific

Mumbai ranked third in the index, recording 7% y-o-y growth in office rentals, followed by Delhi NCR at the 14th spot, which remained stable during the same period.

Bengaluru posts highest growth in office rentals across Asia Pacific
Jakarta was in the second position with a 10.9% growth in office rent. (IE)

Bengaluru continues to lead the Asia Pacific region in terms of office rental growth at 12.1% year-on-year in the quarter ended September, according to Knight Frank’s Asia-Pacific Prime Office Rental Index for the quarter.

Mumbai ranked third in the index, recording 7% y-o-y growth in office rentals, followed by Delhi NCR at the 14th spot, which remained stable during the same period.

Jakarta was in the second position with a 10.9% growth in office rent. Taipei ranked fourth with a 5.5% increase in rent, followed by Singapore with a 5.3% rise, Brisbane 3.9% and Seoul 3.7%.

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Sydney ranked eighth with a 3.4% rent increase, while Perth was at the ninth position with 2.4%, and Shanghai rounded off the top 10 with 1.9% appreciation.

On a sequential basis, the index remained stationary after three consecutive quarters of expansion, while y-o-y, the overall index was up 2.3%, seeing its fourth consecutive rise. Overall, vacancy increased by 1.6% from the June quarter.

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Christine Li, (head of research), Knight Frank Asia-Pacific, said, “Vacancies in the region’s offices trended up after three consecutive quarters, set against a backdrop of new supply being released albeit with higher utilisation rates as activity in workplaces climbs to pre-pandemic levels. While the overall regional rents flattened during the quarter against mounting economic uncertainty, most markets were still holding up with a swift return of in-person work. However, concerns over slowing growth will induce more caution over lease commitments and foster more tenant-friendly markets in the region.”

Asia-Pacific Prime Office Rental Index is a quarterly publication, which tracks the rental performance of prime office properties across key markets in the Asia Pacific region.

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First published on: 22-11-2022 at 01:45 IST