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

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement