According to the latest report by Colliers International India- a research firm, recent demand in Indian office property market has led to an increase in rentals of about 2.8-11 percent in Q2 2018 in major cities. Some of the key micro-markets which witnessed a maximum increased include Kolkata, Pune, Mumbai, Bengaluru etc.
Here’s 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 rents. 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.
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 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.
A suburb of Pune- Bavdhan has seen a 4.2 percent rise in rents QoQ. The area is easily accessible from Mumbai as well the main city. Hinjewadi IT Park is within ready commuting distance from Bavdhan, being just 20 minutes away via the highway.
Hence it can be said that an increase in demand from the technology and finance sectors apart from flexible workspaces have led to a rise in the rentals of office property market across major cities of the country.