A Knight Frank Global Cities report placed Mumbai at second spot among top 20 global cities, which offers the highest rental yields for office space. The city currently offers a 10% return annually on office space rent, said the survey released on October 15.
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Mumbai is ranked number two among 20 global cities for the highest office rental growth. "Knight Frank forecasts that Madrid will top rental growth at 22.2% by 2018, followed closely by Mumbai (21.3%) and San Francisco (20.2%),'' it said.
Bengaluru is on the top of the list while Delhi is ranked third on top global cities in office rental yields. An office space in Bengaluru fetches an annual 10.50% return to the owner while in Delhi the yearly return is 9.50%.
In comparison, London and New York that offer rental yields at 4%. As much as 67% of total investment in India's real estate, mainly driven by commercial market, is from overseas investors, it said.
Current office rentals in Mumbai and Delhi are lower than the 2007 peak levels by 17% and 19% respectively; Bengaluru holds forte with an 8 percent growth.
While London and San Francisco witnessed the highest rental growth for high-rise offices (skyscrapers), Mumbai has also shown a healthy traction in high-rise rentals.
Said Shishir Baijal, Chairman & MD, Knight Frank India, "Indian office market has has clocked office space transactions of 18 million sq ft in the first six months of 2015. We expect the year to complete at around 40 million sq ft which is the highest since 2011."
Bengaluru itself is expected to transact office space to the tune of around 12 million sq ft this year. "Even though at an aggregate level, the vacancy is at 17 % the challenge is to get good quality office spaces across prime business districts, wherein vacancy is in single digits. Due to a robust demand from start-ups and e-commerce, other than IT/ITeS, BFSI and manufacturing, office rentals are experiencing a substantial surge,'' said Baijal.
Samantak Das, Chief Economist & National Director of Research, Knight Frank India said, "While Bengaluru, Mumbai and Delhi are offering the highest yields globally of 9-11% , we see a lot of interest from investors in the last one year, which was preceded by a period of prolonged slowdown. Office markets across the top cities of India are continuing with its turnaround trend observed in 2014. This is backed by robust economic growth and focus on infrastructure and ease of doing business.''
Source - TOI
www.sevagiri.com
Mumbai is ranked number two among 20 global cities for the highest office rental growth. "Knight Frank forecasts that Madrid will top rental growth at 22.2% by 2018, followed closely by Mumbai (21.3%) and San Francisco (20.2%),'' it said.
Bengaluru is on the top of the list while Delhi is ranked third on top global cities in office rental yields. An office space in Bengaluru fetches an annual 10.50% return to the owner while in Delhi the yearly return is 9.50%.
In comparison, London and New York that offer rental yields at 4%. As much as 67% of total investment in India's real estate, mainly driven by commercial market, is from overseas investors, it said.
Current office rentals in Mumbai and Delhi are lower than the 2007 peak levels by 17% and 19% respectively; Bengaluru holds forte with an 8 percent growth.
While London and San Francisco witnessed the highest rental growth for high-rise offices (skyscrapers), Mumbai has also shown a healthy traction in high-rise rentals.
Said Shishir Baijal, Chairman & MD, Knight Frank India, "Indian office market has has clocked office space transactions of 18 million sq ft in the first six months of 2015. We expect the year to complete at around 40 million sq ft which is the highest since 2011."
Bengaluru itself is expected to transact office space to the tune of around 12 million sq ft this year. "Even though at an aggregate level, the vacancy is at 17 % the challenge is to get good quality office spaces across prime business districts, wherein vacancy is in single digits. Due to a robust demand from start-ups and e-commerce, other than IT/ITeS, BFSI and manufacturing, office rentals are experiencing a substantial surge,'' said Baijal.
Samantak Das, Chief Economist & National Director of Research, Knight Frank India said, "While Bengaluru, Mumbai and Delhi are offering the highest yields globally of 9-11% , we see a lot of interest from investors in the last one year, which was preceded by a period of prolonged slowdown. Office markets across the top cities of India are continuing with its turnaround trend observed in 2014. This is backed by robust economic growth and focus on infrastructure and ease of doing business.''
Source - TOI
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