A latest report by Colliers International India- a research firm shows that there is a recent demand in Indian office property market which has led to an increase in rentals of about 2.8-11 percent in Q2 2018 across major cities of India. Some of the key office property markets include Kolkata, Pune, Mumbai, Bengaluru etc.
Take a look at the top Indian cities that witnessed strong office demand in Q2 2018:
Central Business District-Kolkata
Kolkata – CBD tops the list with about 11% QoQ growth in rentals. Due to its proximity to Asia’s largest wholesale market, Burra Bazar, and airport, the area has seen the highest growth. Top banking companies like RBL Bank and HDFC Ergo and other premium office spaces are located in the Central Business District of Kolkata.
Powai-Mumbai
Second in the list is Powai which recorded a 6.3% QoQ growth in rental office property market. In recent years, Powai has become one of the Mumbai’s upmarket commercial hub with many top-notch companies like Sanofi, Amazon, FIS, TCS, Larsen & Toubro, Credit Suisse, Prudential plc, Jardine Loyd Thompson, JP Morgan etc. already shifted their base here.
Navi Mumbai-Mumbai
Navi Mumbai recorded a 5.9 percent rental rise in Q2 2018. Various MNCs like Siemens, McDonald’s, Bureau Veritas, Bizerba, Reliance, Accenture, and Larsen & Toubro have their head offices here making it an active business hub. Due to increase in office space by BFSI sector for their back-office operations, this area has seen a maximum absorption.
North Hebbal-Yelahanka- Bengaluru
This micro-market has seen a QoQ rental increase of 5.1 percent in Q2 2018. A fast emerging office market, the connectivity of this area to other parts of the city adds a feather to its cap. Various MNCs including consulting, engineering and manufacturing and a few flexible workspace operators are located in this area.
Peripheral Business Districts-Kolkata
PBD in Kolkata has recorded a 5% QoQ rental rise in Q2 2018. With the traffic problem in the centre of the city, these zones are steadily turning into major hubs for the IT and ITeS industries. Areas like New Town and Sector V in Bidhannagar, Kasba Industrial Estate etc. have seen numerous office additions over the last few years, thereby increasing rental values here.
Hence due to rise in demand from the technology, finance sectors as well as flexible workspaces, these micro-markets have shown a steep rise in the rentals.