Southern India’s prime city Bengaluru has emerged one of the top three destinations for rent and capital value expectations among global cities which are surveyed by the Royal Institution of Chartered Surveyors (RICS).
RICS, a UK-based qualifications and standards body for land, property and construction issues in a statement, “With respect to 12 month capital value expectations, the most buoyant projections were posted in Dublin, Bangalore and Budapest, according to Q3 2015 RICS Major Cities Commercial Property Monitor.”
“Bangalore has been consistently performing better than other regions in India for many years now. The city has low inventory as project sizes are relatively smaller in comparison to Mumbai and Delhi NCR. Developers are not carrying high debt, execution and delivery of projects are on time and there is a healthy demand of Grade A office space,” said Devina Ghildial, Managing Director, South Asia, RICS.
“Many new start-ups, e-commerce, IT and ITes companies are looking to expand their operations in Bangalore. Our survey clearly puts Bangalore as one of the top destinations not only in India but at a global level for rent and capital value expectations,” adds Ghildial.
For Indian rankings, Mumbai was at the second position and Delhi NCR at third by the society. It declared that all three regions have “Strengthening Occupier & Strengthening Investment”.
The RICS composite indicators, covering developments in overall occupier (OSI) and investment (ISI) market conditions, highlight Dublin as a standout performer in terms of market momentum.
The top OSI readings were posted in Dublin, Lisbon and Tokyo during Q3, suggesting occupier market fundamentals improved the quarter, the sharpest quarterly pace across these three markets (relative to all others covered). Accordingly, near term rental expectations remain elevated in each market.
The most negative rent expectations were reported in Sao Paulo, Singapore, Perth, Zurich, Geneva and Warsaw. Tenant demand fell across all these markets (with the exception of Warsaw) while availability picked up strongly. In Warsaw, moderate growth in demand for occupancy was heavily outpaced by that of supply, placing rents under pressure.
