'Bengaluru Likely To See Highest Rise In Office Rent In APAC Region'

Office rentals are likely to increase by 5-7 per cent in Bengaluru, the highest in the Asia-Pacific region, in 2023.

In its latest report on 'Asia-Pacific Outlook 2023, Property consultant Knight Frank stated that the steady performance of the Indian office markets seen in 2022 is expected to sustain in 2023.  As corporate occupiers are looking to optimise overheads and generate savings, the rent growth in the APAC region is likely to moderate in 2023, the Knight Frank report said.

According to the report, prime office rental in Bengaluru is expected to grow in the range of 5-7 per cent YoY (year-on-year) in 2023, highest amongst the 24 APAC cities analysed. New Delhi's prime office rental is expected to grow in the range of 4-6 per cent YoY followed by Mumbai in the 3-5 per cent YoY in 2023.

The consultant attributed the expected growth in office rentals to a comparatively strong economic outlook, potentially increased outsourcing from the west due to cost constraints and rupee depreciation.

While recessionary forces in the west weigh on the global economy, the APAC region and India are expected to remain beacons of growth in an otherwise uninspiring economic backdrop, said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

Bengaluru's residential price is also expected to grow by up to 5 per cent YoY in the next calendar year, the report said, adding, Mumbai's residential price is likely to grow by up to 4 per cent YoY in 2023, while the residential price in New Delhi is expected to grow in the range of 2-3 per cent next year.