Central Business District (CBD) in terms of prime office space in the country overtook Connaught Place in the capital and Bandra Kurla Complex (BKC) in Mumbai to reach the first position in the second quarter of the current calendar year. CBD rentals have increased by 9%. It is ranked fifth in the Asia Pacific According to a survey by real estate consultancy firm Knight Frank, the CBD rentals in Bengaluru were the highest annual growth in the country. Its current rental is Rs 125 per square feet per month.
The survey noted that BKC and Connaught Place finished eighth and twelfth respectively at the end of the second quarter. The Knight Frank Prime Office Rental Index tracks the rental levels of 20 major cities in the Asia Pacific Region. In the second quarter, Mumbai’s BKC’s rental growth was 5% and Connaught Place’s 1.4%.
Melbourne’s rental growth was the highest on a year-on-year basis with 16%. It is followed by Tokyo (12%), Bangkok (10.4%) and Singapore (10.3%). Office rentals in India remained stable in the second quarter as new supplies increased in the first half of 2019. About 23 million square feet of new office space was added during this period.
Shishir Baijal, chairman and managing director of Knight Frank India, said, “Office rentals in India have performed well despite large fluctuations in global and domestic economic conditions. There has been a steady increase in leasing volumes and they are currently at high levels. This indicates corporate confidence in India’s growth. ‘
He said that IT / ITeS sector still has a large stake in taking up new office space. In the first half of this year, the sector contributed 35% to it. However, this pace is now weakening due to reduced expenses of companies.
Demand has lessened due to increased interest in companies in the co-working segment. Transaction volume of the co-working segment grew by 42% in the first half on a year-on-year basis. He said that due to strong office rentals, investment in this segment will also increase in the coming time.
 moved up to first place in the second quarter.){kind=link}