Just like the residential real estate, the Indian commercial realty market has also noticed a strong growth last year especially in the Q4 of 2018. However, a latest report by a real estate firm has reported that the highest growth has been recorded in the leasing segment and that too in cities of Bengaluru, Kolkata, and Hyderabad etc.
The report released by Colliers International India revealed, “The overall rental values increased by 2.5% year-on-year (YoY) across major cities in Q4. At 8%, Hyderabad witnessed the highest increase in rental values that are followed by Bengaluru which witnessed a 5% increase,”
Take a look at top Indian Cities that witnessed Strong Rental Office Demand in Q4 2018:
In Bengaluru; Whitefield, Bannerghatta Road, Hosur Road, Electronic City, and Outer Ring Road (KR Puram-Hebbal) are the key micro-markets that observed highest rental yield on Y-O-Y basis. Whitefield becomes the hot favourite amongst commercial property owner and that’s why it witnessed an increase of 16.3% in Q4, 2018. It is followed by Bannerghatta Road, Hosur Road, Electronic City, and Outer Ring Road (KR Puram-Hebbal) which witnessed an increase of 13.8%, 8.1%, 7.5%, and 7.1% respectively.
Central Business District (CBD), Peripheral business district (PBD) and Suburban Business. District (SBD) is the key business districts that noticed significant rentals. Due to the presence of Grade ‘A’ office spaces, Central Business District (CBD) witnessed the maximum Y-O-Y with an increase of 15.8% in the city. On the other hand, the presence of hi-tech office spaces increased rentals in PBD and SBD which is 9.1% and 8.3% respectively.
Just like Hyderabad, the Central Business District (CBD) of Kolkata has also outperformed and accounted for a rental increase of 10.5% in Q4 2018.
In Chennai, OMR Post-Toll becomes the most-preferred office space location. This designated IT corridor of Chennai has attracted many leading corporates in recent years. It witnessed a rental increase of 10% in Q4, 2018.