Bengaluru :According to a survey, India’s IT capital Bengaluru yields more official rental than national and financial capital of the country.
According to a report by property consultant Knight Frank on forecast of top 20 global cities with highest rental yields till 2015-end, Bengaluru topped the list offering a return of 10.5 per cent, followed by Mumbai at 10 per cent and Delhi at nine per cent.
“While Bengaluru, Mumbai and Delhi are offering the highest yields globally of 9-11 per cent, we see a lot of interest from the investor’s fraternity in the last one year which was preceded by a period of prolonged slowdown,” Knight Frank Chief Economist and National Director of Research Samantak Das said.
Office markets across the top cities of India are continuing with its turnaround trend observed in 2014, which is backed by robust economic growth and focus on infrastructure and ease of doing business, he said.
According to the study, rentals across Mumbai and Delhi are, however, still below the 2007 peak levels, though Bengaluru is an outlier wherein rentals are 8 per cent more.
“Currently these cities are facing an acute shortage of good quality office space on the face of robust demand which is creating an upward pressure on office rentals that is expected to scale up in the range of 6-7 per cent in the next six months year-on-year,” Das added.
Commenting on the findings, its Chairman and MD Shishir Baijal said, “Indian office market has been maintaining the healthy traction of 2014 and has clocked office space transactions of 18 million sqft in the first six months of 2015 and we expect the year to complete at around 40 million sqft which is the highest since 2011.”
According to the report, this is a record year for Bengaluru which is expected to transact office space to the tune of around 12 million sqft in 2015.