India has emerged as the market with the highest percentage of foreign investment
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MUMBAI: India has emerged as the market with the highest percentage of foreign investment in commercial real estate segment with cities like Bengaluru, Mumbai and Delhi offering the highest rental yields among top 20 global cities. According to Knight Frank, the global property consultant, three of the top five global cities for office rental growth over the next three years are forecast to be in Asia Pacific.
Mumbai is expected to offer the second highest growth in rental yields globally after Madrid while Bengaluru is expected to register fifth highest rental growth in the next three years. The rental yields in Mumbai are expected to grow 21.3 per cent by 2018, a tad lower than the 22.2 per cent growth expected in Madrid while Bengaluru is projected to register a 15.8 per cent growth in rentals.
The Indian office market has been maintaining a healthy traction of 2014 and has clocked office space transactions of 18 million sq ft in the first six months of 2015 against 38 million sq ft transacted during the whole of 2014. “We expect the year to complete at around 40 million sq ft which is the highest since 2011. This is a record year of Bengaluru, which is expected to transact office space to the tune of around 12 million sq ft in 2015. Even though at an aggregate level, the vacancy is at 17 per cent, the challenge is to get good quality office space across prime business districts, wherein vacancy is in single digits,” said Shishir Baijal, CMD, Knight Frank India. He added that a robust demand from start-ups and e-commerce firms are pushing office space rentals.
( Source : deccan chronicle )
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