Rentals of prime offices in Bengaluru and Mumbai fell 8 per cent and 6.2 per cent, respectively, during January-March 2021 as compared to the year-ago period, according to a Knight Frank report.
In its Asia-Pacific Prime Office Rental Index Q1, 2021 report, the consultant said the prime office rents in the national capital region (Delhi-NCR) declined by only 1 per cent during January-March this year as against the same period of 2020.
"Despite there being uncertainty around the performance of India's office sector, Bengaluru, NCR and Mumbai markets are expected to remain stable in rental values over the next 12-months," Knight Frank said.
For Q1 2021, Knight Frank's Asia Pacific Prime Office Rental Index fell 1.2 per cent quarter-on-quarter, led by large office markets such as Tokyo, Hong Kong, and Bengaluru, which recorded rental decline between 3 per cent to 2.8 per cent during the same period.
On an annual basis, the overall index was down 5.5 per cent year-on-year.
Shishir Baijal, chairman and managing director of Knight Frank India, said, “The second wave of pandemic and associated regional lockdowns have temporarily delayed occupiers' office re-occupancy plans."
However, he said, control on infection case count with graded regional lockdowns and progress on vaccination drive will act as a market stabiliser in near future.
"Given the strong fundamentals of the India office market, despite the near-term uncertainty, occupiers will positively react to any improvement in the pandemic scenario in the country," Baijal said.
Photograph: Anushree Fadnavis/Reuters