InvestorQ : What are the emerging trends in the commercial real estate market? Do you see Mumbai market making a sharp comeback this year?
Anjana Aiyar made post

What are the emerging trends in the commercial real estate market? Do you see Mumbai market making a sharp comeback this year?

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Khushi Patel answered.
3 months ago
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It appears that Bengaluru may be fast emerging as the star real estate market in India in the coming year even as Mumbai and NCR are expected to play catch up. At least, that is that the latest report from Knight Frank on commercial real estate appears to indicate.

In what could go down as an interesting real estate trend, the Bengaluru office market expects to see the best rental value accretion over the next one year based on a study done by Knight Frank. Bengaluru already absorbs the highest commercial real estate stock annually, largely into the IT and data management space.

Even as WFH or Work from Home was the big trend in the year 2020, the next year is likely to see the big physical real estate trend back in action. The Sep-20 quarter saw the return of office space demand. Bengaluru currently has the unique benefit of low vacancies that will enable absorption of upcoming supply quickly, helping sales.

But the real edge for the city is that Bengaluru also has the advantage of relatively lower rentals than global markets and a vast talent pool. This is a rare combination that is not easily available in other places. Knight Frank expects overall Asia-Pacific prime office rentals to decline 3% in 2021 but Bengaluru would be the exception.

Knight Frank believes that India could be the real magnet for data centre investors, occupiers, and solution providers. Bengaluru has traditional enjoyed the IT advantage in the South due to its weather and its talent pool. In the Indian market, other than Bengaluru, Mumbai and NCR regions are also showing a lot of promise.

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