Bengaluru to see a surge in office rents in 2021
Real Estate

Bengaluru to see a surge in office rents in 2021

The Indian office market is anticipated to remain strong in 2021, as per a report by international property consultant Knight Frank, with Bengaluru predicted to see a spike in rental values and the National Capital Region (NCR) and Mumbai likely to remain stable.

According to the Asia-Pacific Real Estate Outlook 2021: Navigating the Post-Pandemic Recovery, the market yields for Bengaluru, NCR and Mumbai under office and warehousing segment are expected to remain stable in 2021, in terms of APAC Capital market forecast.

For 2020, prime office rents across the region fell 4% year-on-year, which was in line with Knight Frank's growth forecast of -5% to -3%. At the same time, vacancies in 2020 rose by 1.8 per cent to 12.6%.

Knight Frank expects Asia-Pacific prime office rents to drop between -3% and 0% in 2021, considering all these things. In contrast, the office market in Bengaluru will see an increase in prime rents in 2021, while rentals in Mumbai and NCR will remain stable, according to the report.

Bengaluru student housing remains at the top

The APAC area has witnessed several green shoots in 2020 due to the $1.36 billion Urbanest student housing portfolio deal. Notably, Urbanest was the biggest student housing agreement in Asia-Pacific, and over the last five years, this alone was more than the total transaction sizes.

Student housing in Bengaluru topped the graph with the largest number of university colleges at 961. It is followed by Pune 819, Hyderabad 615, Jaipur 574 and Nagpur at 410.

Knight Frank also said that transaction activity in 2021 would be primarily focused on the main markets of 'safe-haven'. Under the office segment, the commercial yield is projected to stay steady in 2021 for Mumbai, NCR and Bengaluru.

Housing prices in 2021 to remain steady

Indian cities, including NCR, Mumbai and Bengaluru, are likely to see stable prime housing prices in 2021. The reopening of borders, however, will also result in the return of high-net-worth foreign consumers who have been relatively scarce this year.

Expectations of Knight Frank for 2021 are the same as the performance of 2020, with price growth in 17 of the 22 markets to be stable to moderate, backed by continuing low-interest rates.

Knight Frank India says the pandemic’s influence over the year 2020 greatly led to low activity in Q2 2020 and stagnant segments around the Indian real estate market. Progress restart was seen in Q3 2020, however with constructive steps being taken by the government and the RBI. During this time, the struggling residential industries got a new lease of life, and demand saw an unexpected rise.

Source- Money Control

The Indian office market is anticipated to remain strong in 2021, as per a report by international property consultant Knight Frank, with Bengaluru predicted to see a spike in rental values and the National Capital Region (NCR) and Mumbai likely to remain stable.According to the Asia-Pacific Real Estate Outlook 2021: Navigating the Post-Pandemic Recovery, the market yields for Bengaluru, NCR and Mumbai under office and warehousing segment are expected to remain stable in 2021, in terms of APAC Capital market forecast. For 2020, prime office rents across the region fell 4% year-on-year, which was in line with Knight Frank's growth forecast of -5% to -3%. At the same time, vacancies in 2020 rose by 1.8 per cent to 12.6%. Knight Frank expects Asia-Pacific prime office rents to drop between -3% and 0% in 2021, considering all these things. In contrast, the office market in Bengaluru will see an increase in prime rents in 2021, while rentals in Mumbai and NCR will remain stable, according to the report. Bengaluru student housing remains at the top The APAC area has witnessed several green shoots in 2020 due to the $1.36 billion Urbanest student housing portfolio deal. Notably, Urbanest was the biggest student housing agreement in Asia-Pacific, and over the last five years, this alone was more than the total transaction sizes. Student housing in Bengaluru topped the graph with the largest number of university colleges at 961. It is followed by Pune 819, Hyderabad 615, Jaipur 574 and Nagpur at 410. Knight Frank also said that transaction activity in 2021 would be primarily focused on the main markets of 'safe-haven'. Under the office segment, the commercial yield is projected to stay steady in 2021 for Mumbai, NCR and Bengaluru. Housing prices in 2021 to remain steady Indian cities, including NCR, Mumbai and Bengaluru, are likely to see stable prime housing prices in 2021. The reopening of borders, however, will also result in the return of high-net-worth foreign consumers who have been relatively scarce this year. Expectations of Knight Frank for 2021 are the same as the performance of 2020, with price growth in 17 of the 22 markets to be stable to moderate, backed by continuing low-interest rates. Knight Frank India says the pandemic’s influence over the year 2020 greatly led to low activity in Q2 2020 and stagnant segments around the Indian real estate market. Progress restart was seen in Q3 2020, however with constructive steps being taken by the government and the RBI. During this time, the struggling residential industries got a new lease of life, and demand saw an unexpected rise. Source- Money Control

Next Story
Infrastructure Urban

Panasonic Showcases Connected Display Solutions

Panasonic Life Solutions India showcased its integrated display, projection, broadcast and communication technologies at Panasonic Tech Summit 2026 in New Delhi. Hosted through its System Solutions Division, the two-day event highlighted connected technology solutions for education, healthcare, retail, transportation, corporate offices and entertainment.The summit, themed ‘Turning Technology into Value’, featured experience-led zones covering QSR, retail, transit, corporate offices, healthcare, education, security, projection, home theatre and professional displays. Panasonic also introduc..

Next Story
Infrastructure Transport

Kapsch to Deliver India’s First C-ITS Project

"Kapsch TrafficCom will deliver India’s first Cooperative Intelligent Transport Systems project on a key expressway near New Delhi. The project will be implemented with Superwave Communication And Infrasolution Limited to demonstrate how connected mobility can improve road safety and traffic efficiency.The pilot will use real-time connectivity and AI-enabled situational awareness to support road users, especially in high-risk areas such as temporary work zones. Drivers will receive alerts on roadworks, maintenance vehicles, hazardous locations, traffic queues and temporary virtual signage di..

Next Story
Infrastructure Urban

Eurobond Net Profit Rises 44 Per Cent

Euro Panel Products, the parent company of Eurobond, reported a 44.13 per cent year-on-year rise in net profit for FY25–26. The company’s revenue from operations grew 18.91 per cent to Rs 503.20 crore, compared to Rs 423.18 crore in the previous financial year.The company’s full-year EBITDA stood at Rs 56.67 crore, marking a 31.82 per cent increase. Profit after tax rose to Rs 26.56 crore, while net worth increased 20.15 per cent to Rs 160.07 crore. Earnings per share for the year stood at Rs 10.84.Divyam Rajesh Shah, Whole Time Director and CFO, Euro Panel Products, said the company’s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

-->